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Tangible assets are the assets on a company's books and balane sheet that have a physical form. They comprise the machinery, office equipment and buildings used by a company (fixed assets) and of the materials that are used in producing products (current assets).
Tangible assets definition
Tangible assets are the assets on a company's books and balane sheet that have a physical form. They comprise the machinery, office equipment and buildings used by a company (fixed assets) and of the materials that are used in producing products (current assets).
Tangible assets are the opposite of intangible assets: the non-physical assets on a business’s balance sheet, like intellectual property or licences.
Different types of tangible assets will be handled differently in accounting. Current assets are usually turned into cash in the short term, and then turn up in an earnings report as revenue. Many fixed assets will depreciate, and so will have their cost divided among their years of use.
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