Tangible assets are physical items that a company owns and can touch or see. These include items like buildings, machinery, vehicles, and inventory. They are important for a business because they can be used to produce goods or services and can also be sold for cash if needed. These assets are recorded on a company's balance sheet and are typically valued based on their purchase price minus any depreciation. Depreciation accounts for the wear and tear of the asset over time, reflecting its decreasing value. Tangible assets play a crucial role in a company's overall financial health.