What is the difference between tangible and intangible assets?

Can you explain the difference between tangible and intangible assets?

Sure! Tangible assets are physical items like buildings and machinery, while intangible assets are non-physical, like patents and trademarks.

Can you give me some examples of each?

Of course! Examples of tangible assets include cash, inventory, and real estate. Intangible assets include brand reputation, copyrights, and goodwill.

Why are intangible assets important for a business?

Intangible assets can provide competitive advantages, enhance brand value, and contribute to future earnings, making them crucial for long-term success.

How do companies value their intangible assets?

Companies often use methods like the income approach, market approach, or cost approach to value their intangible assets.