Brief Definition
Tangible assets are physical things that have value. They can be touched, seen, and have a physical form. Examples include buildings, land, vehicles, equipment, inventory, and cash. These assets are different from intangible assets like patents or trademarks, which don’t have a physical presence. Tangible assets are important for businesses and can be bought, sold, or used as collateral for loans. Their value can change over time due to factors like wear and tear, market demand, or technological advancements.
Further Explanation
Tangible assets are physical assets that have a physical form and can be touched or seen. These assets have a measurable value and provide some economic benefit to the owner. Examples of tangible assets include buildings, land, vehicles, machinery, equipment, inventory, and cash.
Tangible assets are distinguishable from intangible assets, which are non-physical assets such as intellectual property, patents, trademarks, copyrights, and goodwill. Unlike intangible assets, tangible assets have a physical presence and can be easily valued and quantified.
Tangible assets play a crucial role in business operations as they are typically used in the production or delivery of goods and services. They are often included on a company’s balance sheet and can be bought, sold, or used as collateral for loans. The value of tangible assets may fluctuate over time due to factors such as depreciation, market demand, and changes in technology.