Question

Whir are the characteristics of tangible and Intangible assets?

Answer 1

Assets are every thing a company owns.Tangible assets exist physically.Tangible assets include land, building, machinery, vehicles,equipment, inventory, cash etc.

Characteristics of tangible assets

1.They exist in physicl form. It can be seen , felt and touched.

2. They are depreciated over a period of time.

3.They possess a scrap value or residul value.

4.They can be used as collateral to obtain loans.

5.They are used in the daily operaations of the business.

Intangible assets assets are nonmonetary assets without physical substance like other assets. They include intellectual property, patent, copyright, trademark,franchises, licences, goodwill etc.

Characteristics of intangible assets.

1. They are identifiable.

2. They lack physical existence.

3. They are non monetary assets.

4. They are long term in nature.

5. They provide services over a period of years.