What is a characteristic of tangible assets?

Tangible assets are defined by their physical presence; they are items that can be physically touched and are often used in business operations or investment purposes. This includes real estate, machinery, vehicles, and equipment. The key characteristic of tangible assets is their material nature, which distinguishes them from intangible assets, such as patents or trademarks, that do not have a physical form.

Recognizing tangible assets is important in accounting and financial analysis since they play a significant role in the valuation of a company and in the assessment of its economic activity. Their physicality allows for direct measurement of their existence and value in financial statements.