Types of Assets

Written By Brenna Ramsdell

Types of Assets: 


Intangible Assets - assets that have non-physical characteristics

(Ex. Patents, Trademarks, Copyrights, Franchises, Leases)


Tangible Assets - assets that have physical characteristics 


Current Tangible Assets: assets that have either physical or monetary value that a business expects to convert to cash or use up in approximately one year.

  • Merchandise Inventory 

  • Cash or Bank accounts 

  • Accounts Receivable 

  • Supplies 

  • Prepaid Insurance 

  • Accrued Interest Receivable 

  • Prepaid Expenses 

  • Short-term Notes Payable 


Long-Term Tangible Assets: relatively fixed or permanent in nature, used in the course of operation the business. They are not purchased for resale. 


  • Real Property -  permanently fixed to the land (land, buildings, trees, driveways, fences, sidewalks) 

  • Personal Property - items purchased specifically for business use (furniture, equipment, delivery vehicles, machinery)

Brenna Ramsdell
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