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Tangible Fixed Assets Assignment Help
Here are the Tangible Assets that are Required in Business
Businesses may own two types of assets- one is a tangible asset, and the other is an intangible asset. These assets are extremely important and determine the value of the company.
It is for this reason that most companies put in a lot of effort in managing their tangible assets. It is by properly leveraging these assets those companies will be able to continue their operations and also remain financially stable.
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What is a tangible asset?
Assets of the company that is in physical form are referred to as tangible assets. These are those assets which the workers of a particular company can touch and see. Organizations have complete control over these items because in all probability the organization must have signed contracts to own this property.
These are completely different from intangible assets that do not have a physical form like that of copyright or a patent.
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Role of tangible assets in accounting
Accounting team members consider tangible assets very important because they have to make a separate list of tangible assets. In accounts, the tangible assets fall under “Plant and Equipment.” They also have to know if tangible assets are current or they are fixed assets.
Traits of tangible assets
- Business mainly controls the tangible asset.
- Tangible assets in most cases control the cash flow of business and at times also provide services to the company.
- The tangible assets in most cases are not meant for sale.
- These types of assets have a physical form, and it is for this reason that there is always a chance of being damaged or lost or being stolen.
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It is through these tangible assets that worth of a particular company is decided. If a company is able to support the worth of tangible assets with proper documents, then these can act as collateral for the company in case it wants to take any loan.
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