Which of the Following Statements Accurately Brings Out the Difference

question 97

Multiple Choice

Which of the following statements accurately brings out the difference between tangible and intangible resources?

• A) Tangible resources contribute to a company's competitive advantage, whereas intangible resources have little effect on competitive advantage.
• B) Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.
• C) Tangible resources take a longer time to build, whereas intangible assets can be built comparatively easily.
• D) Tangible assets are difficult for competitors to imitate, whereas intangible assets can be easily replicated.

Knowledge of reversing entries and their purposes.

Understand the function of control accounts and subsidiary ledgers.

Understand the process of recording closing and reversing entries.

Grasp the basics of the income statement preparation and its components.

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Definitions:

Book Value

The value of a company's assets as recorded on its balance sheet, which may differ from their market value.

Excess Land Allocation

The process of distributing land beyond what is needed for operational purposes, often for sale or development.

Book Value

The net value of a company's assets as found on its balance sheet, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intra-group transactions and distributions.