Those assets which can be touch, feel, and see are called Tangible assets. in other words, all those assets which have physical existence are known as Tangible assets. Both categories of assets i.e. Fixed and Current assets have a subcategory of tangible asset.
They always have risk from the human being activities i.e. theft, destroyed or any accident happened at business premises. So, that why most of the businesses get insurance of these type of assets.
Example of Tangible Assets Under the Head of Fixed Assets: –
Under the category of Fixed assets, there are a lot of examples of Tangible assets. This is the main category of these type of assets. Most of these type of assets are fall under the category of Fixed assets. These are shown as follows: –
- Plant and Machine
- Land and Building
- Furniture and Fixture
- Office Equipment
Example of Tangible Asset Under the Head of Current Asset: –
Under the category of Fixed assets examples of Tangible assets are shown as follows: –
- Marketable Securities
- Bills Receivables
Benefits of Tangible Asset: –
These type of assets provide the following benefits to business enterprises: –
- We can take a loan from the bank and financial institutions by pledging these assets.
- We can sell these type of assets when we need cash.
- It is very easy to calculate the life cycle of these type of assets.
- On Tangible Fixed assets, we can charges depreciation and treated it as and loss of business during the particulars financial year.
- In the many types of businesses, these type of assets is playing the role of the backbone of the business enterprises. Like manufacturing Business model.
Thanks Please share with your friends
Comment if you have any question
Check out Financial Accounting Books @ Amazon.in
Also, check out the following Topics: –
- Assets – Meaning, Definition, Types and Examples
- Fixed Assets – Meaning, Explanation with Examples
- Current Asset – Meaning and Explanation with Examples
- Fictitious Assets – Meaning and Explanation with Example