Difference Between Tangible Assets And Intangible Assets

Difference Between Tangible Assets And Intangible Assets

Assets are the properties of a business organization. They are what the business uses to add value or generate profit. 

When assets are classified based on their physical existence, they are classified as either tangible assets or intangible assets.

1. TANGIBLE ASSETS
The first type of assets to be discussed is the Tangible assets. These are assets that have a physical existence (we can touch, feel, and see). Examples of tangible assets include:
  • Land
  • Building
  • Machinery
  • Equipment
  • Cash
  • Office supplies
  • Stock
  • Marketable securities

2. INTANGIBLE ASSETS
The second type of asset is the Intangible assets. These are assets that do not have a physical existence. They are what we can't see, feel and touch. Intangible assets have no value to outsiders except for the owners of the business. Examples of intangible assets include:
  • Goodwill
  • Patents
  • Brand
  • Copyrights
  • Trademarks
  • Trade secrets
  • Permits
  • Corporate intellectual property
In summary, Tangible assets are assets that have a physical existence (we can touch, feel, and see) while Intangible assets are assets that do not have a physical existence. They are what we can't see, feel and touch.

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