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.
It contributes significantly to the value of 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.