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Tangible and Intangible Assets. Discuss the four qualities/characteristics necessary for an asset to be a tangible...

Tangible and Intangible Assets. Discuss the four qualities/characteristics necessary for an asset to be a tangible asset. How do tangible assets differ from intangible assets?

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Expert Solution

Assets can be classified into two .

Tangible asset and intangible asset

Tangible asset are assets which is physical in nature , cash and cash equivalents, buildings and other machineries can be called as tangible asset

Intangible asset are asset which is not physically in nature, the intellectual property rights, goodwill are called mostly called as intangible asset

The characteristics of a tangible asset is as follows

  • Used mostly in day to day operations
  • The asset can be touched and feel
  • The asset is a depreciable asset
  • There Will be residual value

The main difference of tangible and intangible asset is hard to determine and hard to market in the market and they don't have physical existence

ekkarill92 answered 2 years ago
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