Tangible and Intangible Assets Research Paper Example | Topics and Well Written Essays - 1750 words

glaring and In overt Assets - Research Paper ExampleIntangible assets provokenot be seen or felt that is they argon non-physical in nature and they are usually non-monetary. Intangible assets are basically the prospicient term resources of the given firm, usually the legal rights of the firm including patents, trademarks, goodwill and copyrights. Intangible assets cannot be destroyed by fires or other tragedies and they usually add value to the companys financial worth.Tangible assets are physical and identifiable and can be seen and touched. Since businesses are different they also catch different tangible assets depending on their type of business. A companys financial worth is determined by the center of tangible assets that it has in its possession. Tangible assets can further be categorized into current and fixed assets. trustworthy assets consist of assets that can be advantageously converted to cash/liquidated. An example is the firms rim accounts and its inventory (Ho ffman, 2012). Fixed assets are not easily liquidatable and most generally depreciate with judgment of conviction unpack land. Fixed assets are usually used up in the production process and they may admit machinery, equipments, vehicles, land and buildings. Financial recording of tangible and intangible assets is usually done differently, with the tangible assets further shared out into current and fixed assets.... Current Assets A company has these assets on hand and easily available. Companies can easily liquidate these assets. Current tangible assets would include inventory and bank accounts that a company or a business has. Fixed Assets These kinds of assets are exactly the opposite of the current assets. Fixed assets are depreciated over time and they are not easy to liquidate compared to current assets. Fixed tangible assets would include land, building, furnishings, art, historical treasure, and equipment. Tangible Assets Tangible assets have a physical form and can be see n and felt. As discussed above in that respect are two types of tangible assets current and fixed. Current assets can be easily liquidated and converted to cash. They can also be used as collateral for the company to acquire loans. Current assets also have a shorter lifespan and are utilized in the daily operations of the company. Inventory or the impart falls under the current tangible assets and it usually has a life span of less than a year. A companys inventory basically is the products it produces to sale or the goods it distributes at a net income (Capital Fixed Asset Guide, 2013). The inventory is enter daily, weekly or monthly in the companys balance sheet. To record the inventory as well as other current assets they allocate the outgo of the asset to the year the business purchased the asset. Another type of current asset is the business bank account, and it is preserve in the same way as the inventory in the balance sheet. Fixed assets are recorded differently since they have a longer lifespan of more than a year. They are usually purchased to be used for a long time in the firms production process. Examples of fixed assets are buildings, land, equipments, machinery and company