Tangible Assets

Tangible Assets (Definition)

Tangible assets are assets that have a physical form and can be seen, touched, and measured.

Key aspects of tangible assets include:

1. Include items such as buildings, machinery, inventory, and vehicles
2. Recorded on the balance sheet at their historical cost less accumulated depreciation
3. Subject to depreciation over their useful life
4. Can be used as collateral for loans
5. Easier to value compared to intangible assets
6. Play a crucial role in determining a companys net worth
7. Understanding tangible assets is important for assessing a companys financial position and operational capacity

Proper management and valuation of tangible assets are essential for accurate financial reporting and strategic decision-making.