Differentiate between tangible assets and intangible assets.

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.

Mandalika

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Updated on: 25-Jul-2020

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