Definition of Physical asset:
A physical asset is an item of economic, commercial, or exchange value that has a material existence. Physical assets are also known as tangible assets. For most businesses, physical assets usually refer to properties, equipment, and inventory.
A tangible item of value that derives its worth from its ability to be sold, used or bartered. Within a business context, a physical asset might include a companys production equipment, its liquid funds, its product stock and any property it owns.
Physical assets are the opposite of intangible assets, which include such things as brand names, patents, trademarks, leases, computer programs, customer lists, franchise agreements, domain names or trade secrets.
How to use Physical asset in a sentence?
- Physical assets include things like property, plant, and equipment as well as inventories.
- Physical assets are recorded as either fixed or current, where depreciation and impairment may alter their accounting treatment.
- Physical assets, also known as tangible assets, are items of value that have a real material presence.
Meaning of Physical asset & Physical asset Definition