Which of the following defines tangible assets?

Tangible assets are defined as physical items that have substance and can be touched or seen. These include items such as machinery, buildings, and land. They are typically used in the production of goods and services and can provide value to a business over time. Tangible assets usually have a finite lifespan, especially those that are depreciated, like machinery and buildings, which wear out or become obsolete as they are used.

In contrast, the other options reflect different categories of assets or obligations that do not meet the criteria for tangible assets. For instance, intangible rights such as patents and trademarks, while valuable, do not have a physical form and are classified as intangible assets. Financial instruments like stocks and bonds represent claims to ownership or debts and also do not involve physical goods, placing them in a different category altogether. Lastly, liabilities refer to the obligations a company has to its creditors and are not assets at all, further distinguishing them from tangible assets. This understanding helps in accurately classifying assets in financial statements and comprehending their roles within a business.