Final answer:
Long-lived tangible assets, such as collectibles and traditional long-term physical items, are recorded on the balance sheet. Unlike traditional tangible assets, collectibles offer utility and potential future resale value but are not reliable for high returns over time. The balance sheet uses a T-account format to balance assets with liabilities and net worth.
Step-by-step explanation:
Long-lived tangible assets are typically found on the balance sheet under the long-term assets section. These assets include physical items with a useful life exceeding one year, such as property, plant, equipment, and in some contexts, collectibles like paintings, fine wine, jewelry, antiques, and baseball cards. While collectibles can provide returns through enjoyment and potential resale at a higher price, there's scant evidence to suggest a high rate of return over a long period. Hence, collectibles are often seen as more speculative investments compared to traditional long-term tangible assets.
On a balance sheet, these assets are balanced against liabilities and the net worth of an entity as detailed on a T-account, which separates assets on the left and liabilities plus net worth on the right. In a T-account, for the financial health of the business to be evident, the total assets should equal the total liabilities plus net worth.