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Finance: What are Fixed Assets, Tangible Assets and Intangible Assets? 32 Views

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Description:

What are Fixed Assets, Tangible Assets and Intangible Assets? Fixed assets are long term, illiquid assets that are necessary for a company’s operation. Accountants usually categorize Fixed Assets as Property, Plant and Equipment (PPE). Tangible Assets include fixed assets as well as other physical assets, such as inventory, vehicles, and other tactile assets. Intangible assets are those that exist as legally enforceable constructs, such as licenses, patents, goodwill, social media influence, branding, etc.

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Transcript

00:00
finance a la shmoop what are fixed assets and no they're not what people
00:08
gratefully have when they leave the proctologist office fixed assets are
00:13
fixed as in fixed in place hard items things you can kick in you know whiz on [man tried to pull sword out of stone]
00:19
general rules for fixed assets one they're not used up in that accounting
00:24
year like inventory isn't a fixed asset and two they're typically in physical

00:30
form like a contract or a patent is not a fixed asset and three they're listed [contract and patent docs]
00:36
as property plant and equipment on the balance sheet at least usually fixed
00:40
assets you have land and you have plants and you have computers the software on
00:45
them all fixed assets and these are tangible ones so then what are
00:50
intangible fixed assets well basically things that are not
00:54
touchable or physically you know they're not feel about those would be things
00:58
like well our shmoop logo our shmoop guides intellectual property the stuff [Shmoop website images]
01:03
you're watching right now and other copy written material all that kind of stuff
01:07
intangible that famous factory smelting plant we're always talking about here [something gets thrown into industrial smelting pot]
01:11
from up fixed tangible asset the hundred eighty eight acres of the legal pot
01:16
growing farm owned by Mary Jane industries fixed asset the secret recipe [Mary Jane in her pot farm]
01:21
owned by coke which names the ingredient beyond sugar in the fizzy water that
01:26
makes coke oh so great intangible fixed asset anyway these big fat fixed assets
01:31
carry heft and illiquidity like you can't just quickly sell a hundred eighty
01:36
eight acres of a pot farm in well get a whole lot of money for it same deal with [Mary Jane unhappy with her attempt to sell the farm]
01:40
the smelting factory or eight miles of styrofoam packing peanuts [shower of packing peanuts]
01:45
even if they do as our proctologist says give you you know more cushion for the
01:50
pushin don't eat those things [doctor gives man a shot]
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