Difference Between Tangible and Intangible Assets

Tangible assets are physical assets that have a measurable value and can be seen, touched, or held. Examples of tangible assets include property, equipment, inventory, and cash. These assets can be sold or converted into cash, and their value can be determined by their market value or replacement cost.

Intangible assets, on the other hand, are non-physical assets that have a measurable value but cannot be seen, touched, or held. Examples of intangible assets include patents, trademarks, copyrights, brand reputation, and customer relationships. These assets do not have a physical form, but they can generate future economic benefits. Their value is not always easy to determine and it could be based on estimation and assumptions.

In summary, tangible assets are physical assets that can be seen and touched, while intangible assets are non-physical assets that have value but cannot be seen or touched. Both types of assets can be important for a company’s financial health, but intangible assets can be more difficult to value and may require estimates and assumptions.

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