Definition of Tangible asset:
Cash, equipment, machinery, plant, property anything that has long-term physical existence or is acquired for use in the operations of the business and not for sale to customers. In the balance sheet of the business, such assets are listed under the heading Plant and equipment or Plant, property, and equipment. Tangible assets, unlike intangible assets, can be destroyed by fire, hurricane, or other disasters or accidents. However, they can be used as collateral to raise loans, and can be more readily sold to raise cash in emergencies.
How to use Tangible asset in a sentence?
- You can claim depreciation for a rental property because it is a tangible asset , but if you buy a patent to generate royalties then it would be subject to amortization rather than depreciation.
- Investors of WorldCom Inc were furious and outraged after learning that the companys CEO has mislead them on the actual value of the companys main tangible asset .
- Our company purchased a building in order to show the investors that their money was going towards a tangible asset .
Meaning of Tangible asset & Tangible asset Definition