The Primary Distinction Between Tangible and Intangible Assets Is That

question 50

Multiple Choice

The primary distinction between tangible and intangible assets is that:

• A) intangible assets have a physical existence while tangible assets do not.
• B) intangible assets do not have a physical existence while tangible assets do.
• C) since tangible assets do not have a physical existence they do not show up on the balance sheet.
• D) since intangible assets do not have a physical existence they do not show up on the balance sheet.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Break-even Sales

The amount of revenue that must be generated to cover total fixed and variable costs, resulting in zero net income or loss.

Unit Selling Price

The price at which a single unit of a product is sold, determining the revenue generated from sales.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.