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 or intangible assets.
This article explains in full details the difference between tangible assets and intangible assets.
1. TANGIBLE ASSETS
The first type of assets to be discussed is the Tangible assets. They are long term assets, have a physical form (they can be seen, touched and felt).
Examples of tangible assets include:
- Land
- Building
- Machinery
- Equipment
- Cash
- Office supplies
- Stock
- Marketable securities
ALSO READ: Difference Between Fixed And Current Assets
2. INTANGIBLE ASSETS
The second type of asset is the Intangible assets. They do not have a physical presence. They are what we can't see, feel and touch. Intangible assets have no value to outsiders except for the owners of the business and can be easily converted into cash.
Examples of intangible assets include:
- Goodwill
- Patents
- Brand
- Copyrights
- Trademarks
- Trade secrets
- Permits
- Corporate intellectual property
Conclusion: Difference Between Tangible Assets And Intangible Assets
Tangible assets are assets that have a physical existence (we can touch, feel, and see. they include cash, inventory, vehicles, equipment, buildings and investments.
Intangible assets are those that do not have a physical existence. They are what we can't see, feel and touch. and include things like accounts receivable, pre-paid expenses, and patents and goodwill.
