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:

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or stock.

Dissociation

A process authorized under the Revised Uniform Partnership Act that takes place whenever a partner is no longer associated with the running of the partnership firm.

RUPA

The Revised Uniform Partnership Act, which provides a legal framework for the operation of partnerships within the United States.

Continuity of Existence

A business principle referring to the capacity of a company to maintain its operations and existence through changes in ownership or structure.