Tangible assets can be touched (have a physical substance) e.g.
machines, buildings, motor vehicles.
Intangible assets cannot be touched (do not have a physical substance) e.g.
goodwill, development expenditure.
What does tangible and intangible mean?
Tangible assets are physical; they include cash, inventory, vehicles, equipment, buildings and investments. Intangible assets do not exist in physical form and include things like accounts receivable, pre-paid expenses, and patents and goodwill.
What are tangible intangible products?
Product Classification: Tangible or Intangible
A product can be classified as tangible or intangible. A tangible product is a physical object that can be perceived by touch such as a building, vehicle, or gadget. An intangible product is a product that can only be perceived indirectly such as an insurance policy.
What is an example of an intangible?
For example, goodwill, patents, trademarks and copyrights are intangible assets. None of these assets can be physically touched, but they can still have value. The line item for intangible assets is found on the balance sheet. Though goodwill is considered an intangible asset, it’s often listed as a separate line item.