Explain the Difference Between Current, Fixed, and Intangible Assets

question 315

Essay

Explain the difference between current, fixed, and intangible assets. Give two examples of each of these different types of assets.

---

Definitions:

EAR

Effective Annual Rate (EAR) is a measure of interest that takes into account the effects of compounding over a given period.

Compounded Monthly

Interest calculated on an investment or loan each month based on both the initial principal and the accumulated interest from previous months.

EAR

Effective Annual Rate, a measure of interest that takes into account the effect of compounding over a year.

Compounded Quarterly

The process whereby the interest earned on an investment is calculated and added to the principal sum every three months, then the new total is used for the next compounding period.