What defines a tangible asset?

A tangible asset is defined as a physical asset that can be touched or physically measured. This includes items such as machinery, buildings, inventory, and vehicles. These assets hold intrinsic value due to their physical presence and can be used in the operations of a business to generate revenue.

In contrast, options that describe intangible aspects, such as economic resources that cannot be touched, investments in stocks, or intellectual property, do not qualify as tangible assets because they lack a physical form. Intangible assets, for example, include patents, trademarks, goodwill, and copyrights, which represent value in a non-physical way. Understanding the distinction between tangible and intangible assets is crucial in financial reporting and asset management in the context of funeral service operations and other industries.