Part of understanding how sales work is acknowledging assets or goods as tangible or intangible.
Assets are everything a company owns. Tangible assets are physical; they include liquidity, stocks, vehicles, equipment, buildings and investments. Intangible assets do not exist in physical form and include items such as receivables, prepaid expenditures, patents and goodwill.
Understanding the potential long-term benefits of an asset is important for understanding its value. Intangible assets often have a larger long-term value than tangible assets because tangible assets are used more rapidly. For example, the patent for a new technology could continue to generate money for decades, while the products based on that patent might have value in inventory for only a short time.
Tangible Assets VS Intangible Assets
An asset is a useful/valuable thing or person. Assets are divided in different ways as a function of their physical existence, life expectancy, nature, etc. The difference between tangible and intangible assets depends purely on their physical existence within an enterprise.
Simply put, property is property owned by a person or organization that is recognized as having value and available to meet its obligations.
Tangible Assets
The best way to remember tangible assets is to remember the meaning of the word “Tangible” which means something that can be felt with the sense of touch. Assets which have a physical existence and can be touched and felt are called Tangible Assets. The main difference between tangible and intangible assets is where one can be touched and felt the other only exists on paper.
Intangible Assets
The opposite of tangible assets, Intangible assets don’t have a physical existence and cannot be touched or felt. Intangible assets can either be definite or indefinite, depending on the kind of an asset in question.
A few examples of such assets include goodwill, patent, copyright, trademark, company’s brand name, etc.
