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:

Deadweight Loss

The lost economic efficiency when the equitable or allocatively efficient outcome is not achieved, often due to taxes, subsidies, or monopolies.

Excise Tax

A tax imposed on specific goods, services, or activities, usually to discourage their use or to raise revenue.

Elasticities

Measurements of how changing one economic variable affects others, such as how quantity demanded will change as a result of price changes.

Subsidy Benefit

Government-provided support to aid businesses, individuals, or sectors of the economy through financial help.