Physical assets refer to tangible items that a company or individual owns, which can be used to generate economic value. These include items like real estate, machinery, and inventory. Unlike intangible assets, physical assets have a physical presence and can be seen and touched. The management of physical assets is crucial for businesses as they often represent a significant portion of total assets. Proper maintenance and valuation of these assets can lead to improved operational efficiency and financial performance. Examples of physical assets include vehicles, buildings, and equipment that are essential for day-to-day operations.