TANGIBLE ASSET Meaning and
Definition
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A tangible asset is a physical or real item or property that holds value and can be measured in monetary terms. These assets have a physical substance and can be seen and touched. They are distinct from intangible assets, which are not physical and lack a physical substance like patents, copyrights, brand names, or goodwill.
Examples of tangible assets include real estate, vehicles, machinery, equipment, inventory, and cash. These assets have a clear market value and are typically reported on a company's balance sheet, enabling the organization to determine its overall net worth.
Tangible assets are essential for many businesses as they contribute to generating revenue or facilitating operations. For instance, machinery and equipment enable the production of goods, while inventory is sold to generate revenue. Real estate can be leased or sold for income generation, and vehicles can be utilized to transport goods or employees.
These assets can also act as collateral for loans or other financial transactions as they can be easily valued and sold if necessary. Additionally, tangible assets can physically depreciate over time, wearing down or becoming obsolete, which impacts their value.
Therefore, businesses and individuals must diligently track their tangible assets to ensure accurate financial reporting and proper asset management. This involves regular appraisal, maintenance, and monitoring of these assets to maximize their value and minimize the risk of depreciation or damage.
Common Misspellings for TANGIBLE ASSET
- tangible asset
- tangible assest
- tangible assetr
- rangible asset
- fangible asset
- gangible asset
- yangible asset
- 6angible asset
- 5angible asset
- tzngible asset
- tsngible asset
- twngible asset
- tqngible asset
- tabgible asset
- tamgible asset
- tajgible asset
- tahgible asset
- tanfible asset
- tanvible asset
- tanbible asset
Etymology of TANGIBLE ASSET
The word "tangible" originated from the Latin word "tangibilis", which means "touchable" or "perceptible by touch". It is derived from the verb "tangere", which means "to touch".
The word "asset" has its roots in the Old French word "assez", which means "enough" or "sufficient". It was later influenced by the Latin word "ad satis", which means "to sufficiency".
Therefore, when combined, "tangible asset" refers to an asset that is physically tangible or touchable. It represents any item of economic value that can be physically observed, such as real estate, machinery, or inventory.
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