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- Name – Quiz 32 – Tangible Assets – (Answers)
- Topic – Tangible Assets
- Answers with Explanation
Q1. Which of the following is not a tangible asset?
Ans. Intellectual property is intangible in nature. They are creations of the human intellect.
Q2. _____ is an example of tangible assets.
Ans. ‘Raw material‘ is usually a tangible current asset.
Q3. Tangible assets cannot be used as collateral for loans.
Ans. The given statement is False. Tangible assets can easily be kept as collateral. There is no restriction as such. E.g. gold is a tangible asset and can be used as collateral.
Q4. All tangible assets are depreciated.
Ans. The given statement is False. Tangible assets may be current assets too which are not depreciated.
Q5. Tangible assets are recorded in _____.
Ans. Tangible assets are recorded on the ‘assets’ side of a balance sheet.
Q6. Tangible assets do not contribute to business cashflow.
Ans. The given statement is False. It is not true as tangible assets contribute to the cash flow of a business. It involves both the inflow and outflow of cash.
Q7. Land = 5,000, Trademark = 3,000, and Equipment = 7,000. Tangible Assets _____?
Ans. Tangible Assets = Land + Equipment = 5,000 + 7,000 = 12,000
Q8. Which of the following is not considered a tangible asset?
Ans. Trademarks do not have a physical existence therefore they are intangible assets.
Q9. Which of these is an example of tangible assets?
Ans. Equipment is a tangible asset as it has a physical form.
Q10. Tangible assets are always fixed assets.
Ans. The given statement is False. Tangible assets can be current assets too such as inventory (stock).
Q11. A tangible asset has _____.
Ans. Tangible means anything having physical existence which can be touched & felt.