Assets are the economic resourses of every business. For the
accounting purposes the assets are classified into several types.
And in that it is mainly classified as tangible assets and
intangible assets.
Here we can go through the characteristics of the tangible and
intangible assets.
Tangible Assets
- They have Physical existance
- These assets will be depreciated always
- These assets are able to liguidate very easily, because it can
be sold whenever need of cash
- The costs of the tangible assets can be easily valued,
according to the situations
- There will be enough market value or atleast scrap value for
the tangible assets.
- These assets are mosly used for the pupose of operations of the
business.
- Assets like machinery, plant, vehicles, land, building are the
examples for the yangible assets.
Intangible Assets
- Intangible assets may not have physical existance.
- Intangible assets may amortise due to increase in the value of
the firms.
- It is not much easy to sell or liquidate
- The cost of the intangible assets are very difficult to
ascertain
- These are the assets related to toplevel or value of the firm
or the business.
- Softwares, logos, copy rights, patents, goodwill and such other
intellectual properties are the examples for the intangible
assets.