what is a tangible asset

Tangible assets are assets with physical substance that can be seen, touched, and felt. They are recorded on the balance sheet and have a finite monetary value. Examples of tangible assets include land, buildings, vehicles, furniture, equipment, raw materials, goods in process, and finished products. Tangible assets are used to drive future economic benefits for a company. They are classified as fixed assets and appear in the long-term assets section of a firms balance sheet. Tangible assets are frequently used as collateral for loans, since they tend to have robust, long-term valuations that are valuable to a lender. Companies with more tangible assets generally utilize debt financing more heavily.