What Is the Main Difference Between Real Assets and Financial

question 23

Multiple Choice

What is the main difference between real assets and financial assets?

• A)Real assets are tangible and financial assets are intangible.
• B)Real assets have known values, while the values of financial assets are not known.
• C)Real assets are intangible and financial assets are tangible.
• D)Real assets have unknown values, while the values of financial assets are known.

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Definitions:

Lease Contract

A legal agreement between two parties where one party allows the other to use a property, equipment, or service for a specified period in exchange for payment.

Legally Owns

Possession of property, shares, or assets in accordance with the law, granting the owner the legal rights to use, sell, or modify the owned item.

Lessor

The owner of a property or asset that is leased or rented out to another party, known as the lessee.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, outlining assets, liabilities, and shareholders' equity.