Tangible asset
Tangible assets are physical assets that can be seen and touched. These assets have a physical form and are used by companies to generate revenue. Tangible assets can include property, equipment, machinery, vehicles, and inventory.
One example of a tangible asset is a manufacturing company’s machinery. The machinery is used in the production process to create products that are sold to customers. Another example is a retail store’s inventory of goods that are available for sale.
Tangible assets are important for businesses as they can be used as collateral for loans and can also be depreciated over time to reduce taxable income. It’s crucial for companies to properly manage and maintain their tangible assets to ensure they are operating efficiently and effectively.
Overall, tangible assets play a vital role in a company’s operations and financial stability.
Examples of tangible assets:
- Property (land, buildings)
- Equipment
- Machinery
- Vehicles
- Inventory
For more information about tangible assets, you can visit Wikipedia.