Monday, 24 October 2016
Tangible assets and intangible assets
Hello readers, today I will be writing about tangible assets and intangible assets. Tangible assets are physical by nature. You can touch them. Example of tangible assets are Land, equipment, machinery and others. These assets are used by company to carry out daily activities. Tangible could become damaged as a result of an accident. Tangible assets depreciates in value. It is easier to sell them when compared with intangible assets
There are two types of tangible assets which are the non-current assets and the current assets. Current assets are assets that are coverted into cash by the end of one year. Non-current asset are long term by nature. They are not converted into cash within one year. However, they can be liquidated when the company needs money. The non current assets are normally not expected to be sold.
Intangible assets on the other hand cannot be seen or touched. They are invisible. Example of intangible assets include copyright, patent, business logo and others. Intangible assets are amortized unlike tangible assets which are depreciated.
Intangible assets are not so easy to convert into cash. Valuation of this type of asset is not easy. They can be higher in value when compared to intangible assets. That is all for today. Thank you for reading this article. Keep checking out my blog regularly. Cheers!