User:Proahmad88/sandbox

Physical Assets

A physical asset is an item with exchange, commercial, or economic value and it also has a material existence. The other name given to a physical asset is a tangible asset, because any physical asset will always be a tangible thing. A tangible asset is different from an intangible asset in terms of its physical presence, whereas both can have some value for their owners. One of the prime example of a physical asset is a property or a car. When we talk about physical assets for a business, then it means that we are referring to tangible things like inventory, equipment, or properties. It is vital to understand that a business’s value and operations are based on the kind of assets it has. These physical assets are represented on the balance sheet, showing how sustainable and strong a business is. These physical assets are critical for any business as they create a real value for them so that businesses can generate revenues and profits.