Tangible and Intangible Assets

The video tutorial explains the concept of assets, which are valuable items owned by individuals or companies. It distinguishes between tangible assets, like money and equipment, and intangible assets, such as trademarks and brand recognition. Tangible assets are physical and can be valued based on purchase cost, though they may depreciate over time. Intangible assets, on the other hand, are non-physical and valued based on their economic benefit to a company. The tutorial emphasizes the importance of both asset types in determining a company's worth and making informed business decisions.

What is the primary difference between tangible and intangible assets?

• Intangible assets can be touched, while tangible assets cannot.

• Tangible assets are always more valuable than intangible assets.

• Tangible assets are only used for branding purposes.

• Tangible assets are physical, while intangible assets are not.

How can companies benefit from tangible assets?

• By converting them into intangible assets.

• By ignoring their depreciation.

• By using them to produce goods or provide services.

• By selling them directly to customers.

What happens to the value of some tangible assets over time?

• It decreases due to wear and tear.

• It increases significantly.

• It becomes intangible.

• It remains constant.

How is the value of intangible assets typically determined?

• By their physical condition.

• By their purchase cost.

• By their expected economic benefit.

• By their weight.

Which of the following is an example of an intangible asset?

• Company car

• Inventory

• Brand name

• Office building