What are tangible and intangible assets | BDC.ca
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Tangible and intangible assets

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Assets are everything a company owns. Tangible assets are physical; they include cash, inventory, vehicles, equipment, buildings and investments. Intangible assets do not exist in physical form and include things like accounts receivable, pre-paid expenses, and patents and goodwill.

To understand the value of an asset, it’s important to understand its potential long-term benefits. Often, intangible assets are of greater long-term value than tangible assets because tangible assets are used up more quickly. For example, the patent for a new technology could continue to generate money for decades, while the products based on that patent might have value in inventory for only a short time.

More about tangible and intangible assets

The balance sheet below shows how ABC Company values its various assets.

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