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What are Tangible Assets?

Tangible assets are the property of a company that are tangible and can be quickly liquidated.

This includes current-period accounts receivable and money in checking, savings, and money-market accounts. Buildings, land, equipment and inventory are all tangible assets as well. Tangible assets are an important part of a company’s book value. For most valuations, intangible assets such as patents, other intellectual property, and goodwill are not included.

If a company were sold tomorrow to a company that had no use of the intellectual property or other intangible assets, the fair market value of the company’s assets would be the main deciding factor in the price paid for the company. The value of a tangible asset will usually be reduced by AICPA | IRS depreciation schedules. On a balance sheet, most tangible assets will appear in the Property, Plant, and Equipment account.

Tangible assets will include cash and cash equivalents. Tangible assets minus liabilities is the book value, also called tangible net worth, of a company.

Keywords: book value, goodwill, depreciation, American Institute of CPAs (AICPA), cash equivalents, intangible assets, tangible assets, liquidation value, intellectual property, patents,