Final answer:
Long-lived tangible or fixed assets are found on the balance sheet under 'Property, Plant, and Equipment' (PP&E). They are reported at historical cost less accumulated depreciation. Collectibles may also be considered assets, though they don't always yield high returns.
Step-by-step explanation:
Long-lived tangible assets, also known as fixed assets, are located on the balance sheet within the financial statements of a company. Fixed assets typically include items such as buildings, machinery, equipment, vehicles, and furniture that are used in operations and have a useful life of more than one year. These assets are part of a company's long-term investments and are essential for the production of goods and services. On the balance sheet, fixed assets are reported under the heading of 'Property, Plant, and Equipment' (PP&E) and are typically listed at their historical cost, minus accumulated depreciation. This reflects the wear and tear or obsolescence of the assets over time. Tangible assets like collectibles - paintings, fine wine, jewelry, antiques, or baseball cards - can be used for personal enjoyment and potentially sold at a higher price in the future. However, investing in collectibles is not guaranteed to provide a higher-than-average rate of return over a prolonged period.
On the other hand, the T-account is a simplified representation of a company's accounts, showcasing assets on one side and liabilities and net worth on the other. In a bank's T-account, for example, assets include reserves and financial instruments such as loans and government securities, while liabilities include deposits and net worth represents the residual value of the bank (assets minus liabilities).