What is tangible assets ?
What is tangible assets ?
Tangible assets are those assets that can be physical touched. These include property, equipment’s, inventory, land, building, AC, car, plant Machinery and money in the form of cash.
Types of Tangible Assets
Tangible assets can be classified into three categories: fixed, current, financial.
Fixed Tangible Assets
Fixed tangible assets are those that could require a long- term investment and that assets are use in business more than one year.
Example
Plant
Machinery
Equipment
Vehicles
Current Tangible Assets
Current tangible assets are those that are used within a year.
Example
Inventory
Small office equipment
Financial Tangible Assets
Financial assets may not require an initial investment but you should expect to see little return on your money because these assets can be easily turned in to cash.
Example
Treasury bills
Saving Bonds
Stock etc.
Difference between Tangible and Intangible Assets
Intangible and tangible assets has minor difference intangible assets not have a physical presence while tangible assets exist in physical.