Tangible and Intangible Differentiation  

Tangible assets can be referred to as the long-term resources which are physical and that are owned by an organization or the corporation, which has some economic value. Corporation acquires those assets to carry out its business operations smoothly and is usually not for sale. Examples for the same would be plants & machinery, buildings, vehicles, tools & equipment, furniture & fixtures, land, computers, etc. These assets mostly suffer from the risk of loss due to theft, fire, accident, or any other such disaster. Tangible assets do have a useful economic life, after which it has the risk of becoming obsolete. Depreciation is the common method that has been incorporated by the firms to spread the part of that asset’s expense over its economic life.

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