Tangible assets are one of two types of assets a business may own. These assets contribute significantly to the value a company has at any given point. Therefore, companies take great care to track and manage the tangible assets they have. By leveraging these assets, companies can remain financially stable and continue operations.
Classification and Examples
Tangible business assets can vary greatly from business to business, as the the properties each company needs to operate are not consistent. However, tangible business assets generally fall into two main categories: current and fixed. Current assets are assets the business has on hand that are flexible and which the company can liquidate fairly easily, such as funds in a business bank account. Inventory is another good example of a current asset. Current assets often don't depreciate. Fixed assets are just the opposite. They are harder to liquidate and typically do depreciate. Examples in this category include the company's buildings, machinery, land and furniture.
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