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Tangible Assets

Last updated 23rd Sep 2022


The financial accounting term tangible asset is used to describe assets that have physical substance. Examples of tangible assets include cash, accounts receivable, inventory, land, buildings / real estate, and machinery.


Tangible assets are usually long term assets, and can be found on a company's balance sheet. The term is often associated with property, plant, and equipment, which is usually subdivided into two categories:

  • Land: considered an asset with an unlimited term of existence; therefore, land is never depreciated.
  • Property and Plant: assets that have a limited term of existence; therefore, they are subject to depreciation.

Current assets are also considered tangible assets and include cash, marketable securities, accounts receivable, inventories, and prepaid items.

Assets that lack a physical structure are called intangible assets, which include goodwill, copyrights, trademarks, patents, franchises, and organization costs.

Related Terms

balance sheet, intangible asset, property, plant and equipment, current assets, depreciation

Moneyzine Editor

Moneyzine Editor