What is a Fixed Asset?
A fixed asset is a long-term asset that a company uses in its operations. The company records the purchase of a fixed asset on its balance sheet. The fixed asset is then depreciated over its useful life.
What is a Fixed Asset's Tangible Book Value?
A fixed asset's tangible book value is the net amount for which an asset can be sold, less the cost of any associated liabilities. This value takes into account the depreciation of the asset over its lifetime. The tangible book value can be used to measure the value of a company's fixed assets and to help assess the company's overall financial health.
What is a Fixed Asset's Intangible Book Value?
Fixed assets are long-term assets used in a company's operations that are not intended for sale. Intangible book value is the portion of the fixed asset's cost that is not related to the physical asset itself, such as the value of a company's name or trademark. This value is usually determined by an appraiser and is included in the fixed asset's total cost.
What is the Difference Between Tangible Book Value and Intangible Book Value?
The difference between tangible book value and intangible book value is that tangible book value measures the value of a company's assets that are physical and can be touched, such as cash, investments, and property. Intangible book value, on the other hand, measures the value of a company's assets that are not physical, such as trademarks and copyrights. This value is often more difficult to measure, and can be more subjective, than the value of physical assets.
What is a Good Example of a Fixed Asset?
Fixed assets are long-term assets that a company uses in its operations. These assets are typically purchased for a specific purpose and are not intended for sale. Common examples of fixed assets include land, buildings, and equipment. Fixed assets are recorded on the company's balance sheet at their cost, less any accumulated depreciation.
