Please explain Tangible and Intangible Assets. What are types of both? Also Intangible Assets are not depreciated but amortized. Please explain the difference. What kind of intangible assets are amortized? Do Tangible and Intangible Assets show up on the Balance Sheet, if they , is do please list the order they appear. For example Current Assets appear first and in order of liquidity is that correct? Please Show in order how Assets are recorded as well as explain the difference between Tangible and Intangible and what amortization is. Thanks!

Question
Asked Feb 8, 2019

Please explain Tangible and Intangible Assets. What are types of both? Also Intangible Assets are not depreciated but amortized. Please explain the difference. What kind of intangible assets are amortized? Do Tangible and Intangible Assets show up on the Balance Sheet, if they , is do please list the order they appear. For example Current Assets appear first and in order of liquidity is that correct? Please Show in order how Assets are recorded as well as explain the difference between Tangible and Intangible and what amortization is. Thanks!

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Expert Answer

Step 1

Step1: Definition of tangible asset and intangible assets. We have,

Tangible assets are those assets which appear in the physical form and it is measurable. Assets like fixed assets and current assets are tangible assets. While, Intangible assets are those asset which does not appear in physical form and these asset have useful life more than one years. For example: patents, trademarks, copyrights, goodwill etc.

Step 2

Step2: Difference between tangible assets and intangible assets. We have,

Depreciation is a technique used measure the decrease in the value of the asset due to age, wear and tear or any other technical reason. The purpose of the depreciation is to prorate the cost of the asset over its life years. Depreciation is used for tangi...

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