What is Tangible Assets?
Definition of Tangible Assets
Any assets in physical form are known as tangible assets, such as plant and machinery, furniture, vehicles etc. The company has control over these physical assets because of events that have happened in the past, such as signing a purchase contract.
Explanation of Tangible Assets
Tangible assets contribute significantly to the value a company. Therefore, companies make sure to track and manage the tangible assets they have. Companies can remain financially stable and continue operations by leveraging these assets.
There are two main types of tangible assets: Current assets and Fixed assets. Current assets are assets the business has on hand that are flexible and which the company can liquidate easily, such as funds in a business bank account. Fixed assets are harder to liquidate and typically do depreciate, for example, buildings, machinery, land and furniture.