In financial terms, 'tangible assets' are best described as?

Tangible assets are best described as physical assets because they consist of items that have a physical presence and can be touched or seen. This category includes things like real estate, machinery, vehicles, equipment, and inventory. The defining characteristic of tangible assets is their materiality, which stands in contrast to intangible assets, which represent non-physical elements like intellectual property, brand value, and goodwill.

When considering financial assets, these are typically investments or assets that provide a monetary value but may not have a physical form, such as stocks and bonds. Thus, the distinction lies in the fact that tangible assets have a physical nature, which is essential for their classification in the context of financial reporting and asset management.