Operating Assets FAQs What is a category of long-lived assets used to produce goods or services in the production process? This group includes not only tangible assets (often called property, plant, equipment, or Fixed Assets) but also those that exist only as intangible rights (such as trademarks, patents, and goodwill). The category excludes assets that are held as investments and will be disposed of in the near future. What is an intangible asset? Intangible assets (usually called “intangibles”) represent legal or contractual rights to something other than physical resources. The most common forms are patents, copyrights, franchises, goodwill, trademarks and trade names. Intangible assets can be bought or sold just like tangible assets. What is the percentage that operating assets account for on a business' year-end balance sheet? Operating assets account for 80% of all business’s year-end balance sheets. Do you always have to disclose non-operating assets? No, non-operating assets are usually not disclosed unless they exceed one percent of total assets. What is the difference between non-operating assets and equity? If you have an asset that does not generate revenue for your company, then it is considered to be a non-operating asset. For example, leasehold improvements are non-operating assets because they are expenses used to increase the value of the property on which they sit. Equity's basic purpose is to represent ownership in an entity (i.e., stock). About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.