The financial accounting term tangible asset is used to describe assets that have physical substance. Examples of tangible assets include cash, accounts receivable, inventory, land, buildings / real estate, and machinery.
Tangible assets are usually long term assets, and can be found on a company's balance sheet. The term is often associated with property, plant, and equipment, which is usually subdivided into two categories:
Current assets are also considered tangible assets and include cash, marketable securities, accounts receivable, inventories, and prepaid items.
Assets that lack a physical structure are called intangible assets, which include goodwill, copyrights, trademarks, patents, franchises, and organization costs.
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