Tangible assets:
Those assets which have physical existence which means it can be seen and touch is called tangible assets. Cash, inventory, furniture, equipment etc. are the examples of tangible assets. It exists for a long term. It can be depreciated.
Intangible assets:
Intangible assets are those assets which cannot be seen and touch. Goodwill, trademark, patent right, etc. are the examples of intangible assets. They are long term assets. It can be amortised.
Differences:
| Basis | Tangible assets | Intangible assets |
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| Definition (www.thefreedictionary.com) |
An asset whose value depends on particular physical properties. These include reproducible assets such as buildings or machinery and non-reproducible assets such as a land, a mine, a work, or a work of art. Also called real assets. | Assets that do not have an easily determined monetary value such as brand loyalty or intellectual property rights. |
| Synonyms | Liquid assets, stock, wealth, funds, circumstances | Means, net worth, resources, assets, intangible fixed assets |
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| Types | The types of tangible assets are:
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The types of intangible assets are:
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| Form | Tangible assets have physical form; they can literally be seen and felt. | Intangible assets do not have physical form. |
| Liquidated | Tangible assets are liquidated by the company’s accountant. | Intangible assets can be liquidated through determining what a company would be without it. |
| Advantages/Benefits | Its advantages are:
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Its advantages are:
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| Disadvantages | Its disadvantages are:
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