Differentiate between tangible assets and intangible assets.

Banking & FinanceManagementCompanies/Organisations

The major differences between tangible assets and intangible assets are as follows −

Tangible assets

  • They have physical existence.

  • They get depreciated.

  • Liquidation is easier as compared to intangible assets.

  • They can be determined and evaluated easily.

  • They increase the value of the company.

  • They can be accepted as collateral.

  • They can be effected by natural calamities and by others means.

  • Land, vehicle, machinery, furniture etc. are some of the examples of tangible assets.

Intangible assets

  • They don’t have physical existence.

  • They get amortised.

  • Liquidation is not easy as compared to tangible assets.

  • Determination and evaluation is difficult.

  • They increase the potential revenue.

  • They can’t be accepted as collateral.

  • They can be effected by business failure only.

  • Blueprints, goodwill, copyrights etc. are some of the examples of intangible assets.

raja
Published on 25-Jul-2020 10:34:02
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