Tangible Asset


DEFINITION of 'Tangible Asset'

Assets that have a physical form. Tangible assets include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory. The opposite of a tangible asset is an intangible asset. Nonphysical assets, such as patents, trademarks, copyrights, goodwill and brand recognition, are all examples of intangible assets.


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BREAKING DOWN 'Tangible Asset'

Certain types of assets receive special treatment for accounting purposes. For tangible assets with an anticipated useful life of more than one year, a company uses a process called depreciation to allocate part of the asset's expense to each year of its useful life, instead of allocating the entire expense to the year in which the asset is purchased.

To learn more about asset classes, check out "What is the difference between tangible and intangible assets?"

  1. Business Asset

    A piece of property or equipment purchased exclusively or primarily ...
  2. Active Asset

    An asset that is used by a business in its daily or routine operations. ...
  3. Going-Concern Value

    The value of a company as an ongoing entity. This value differs ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses ...
  5. Net Tangible Assets

    Calculated as the total assets of a company, minus any intangible ...
  6. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
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  1. What is the average price-to-book ratio in the utilities sector?

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    A limited liability company, or LLC, cannot issue stock. Instead, an LLC is structured to have single or multiple owners ... Read Full Answer >>
  3. Which has performed better historically, the stock market or real estate?

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  4. What is an aggregate limit and what type of insurance is it usually associated with?

    Tangible assets can be liquidated and turned into cash, if necessary. In high-risk industries or high-risk business situations, ... Read Full Answer >>
  5. Which consumer goods do Americans buy the most of?

    A tangible asset is any asset with a physical form, and includes fixed assets such as machinery, land and buildings. Tangible ... Read Full Answer >>
  6. Why should you invest in tangible assets?

    Savers who deliberately buy tangible assets for investment purposes value their tangible goods as a form of value diversification ... Read Full Answer >>
  7. What is the difference between fixed assets and current assets?

    Fixed assets, also known as property, plant and equipment (PP&E), are tangible assets that a company expects to use for ... Read Full Answer >>
  8. What is the difference between tangible and intangible assets?

    Tangible Assets Tangible assets are physical assets such as land, vehicles, equipment, machinery, furniture, inventory, stock, ... Read Full Answer >>
  9. What is the difference between goodwill and tangible assets?

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    Both "overdraft" and "cash credit" can refer to a type of secured line of credit with a lender. These terms can also refer ... Read Full Answer >>
  11. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ... Read Full Answer >>

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