what is a tangible asset 
a tangible asset is an asset that has a finite monetary value and usually a physical form tangible assets can typically always be transacted for some monetary value though the liquidity of different markets will vary tangible assets are the opposite of intangible assets which have a theorized value rather than a transactional exchange value investopedia candra huffunderstanding tangible assetsa business s net worth and core operations are highly dependent on its assets management of assets and asset implications is one key reason why companies maintain a balance sheet assets are recorded on the balance sheet and must balance in the simple equations assets minus liabilities equals shareholders equity which governs the balance sheet companies have two types of assets tangible and intangible tangible assets are assets with a finite or discrete value and usually a physical form these are items a company uses in its operations that it can touch and utilize in the real world there are several common characteristics that most tangible assets have types of tangible assetstangible assets can be either current assets or long term assets current assets may or may not have a physical onsite presence but they will have a finite transaction value long term assets sometimes called fixed assets comprise the second portion of the asset section on the balance sheet these long term assets have less liquidity and are often more capital intensive in nature long term assets are usually tangible assets much larger in size tangible assets are recorded on the balance sheet at the cost incurred to acquire them long term tangible assets are reduced in value over time through depreciation depreciation is a noncash balance sheet notation that reduces the value of assets by a scheduled amount over time current assets are converted to cash within one year and therefore do not need to be devalued over time for example inventory is a current asset that is usually sold within one year if you can physically touch a product it is tangible therefore many types of inventory are tangible assets be mindful that very similar products may have different characteristics for example a cd from your favorite artist could be physical inventory though digital mp3 files of the same songs are intangible tangible inventory assets cover the entire spectrum of manufacturing this begins with sourced raw materials and continues to goods in process that the company has begun manufacturing last tangible assets also includes finish products that the company has not yet sold that are being reported as inventory 