Intangible assets
In one sentenceAssets with no physical form that the business controls and benefits from for years, such as licensed software, trademarks and franchise rights.
Simply put
You can't touch them, but they benefit the business just as equipment does: a five-year software license, a trademark you bought, or a franchise right to open a branch.
They are recorded at cost if purchased, then the cost of those with a finite life is spread over the years of use; this is called amortization.
Example
A trading business bought a five-year accounting software license, recorded it as an intangible asset at cost, and then charged one fifth of the cost as an expense each year.
Don't confuse it with
Prepaid expenseAn amount paid in advance, usually for a short period such as a year's rent; it is not an intangible asset.