Tangible Asset


Definition: a Tangible Asset is an asset type that can be seen and has a physical existence. Typical examples of tangible assets are: machinery, equipment, tools, IT hardware, inventory (stock), vehicles, cars, ships, airplanes, houses, offices, plants, land, buildings, money, payments owed to you (accounts receivable).
In accounting, this type of asset should be depreciated if it has an anticipated useful life of more than one year.
The opposite of a tangible asset is an intangible asset. Intangible assets include brands, reputation, copyrights, patents, trademarks, trade secrets, know-how and goodwill.



More on tangible assets.
More on accounting and auditing: Accounting Cycle, Accounts Payable, Accounts Receivable, Amortization, Appreciation, more...


MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.

© 2021 MBA Brief - Last updated: 19-1-2021  -  Privacy   |   Terms