Question

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a. What is the difference between a long and short term asset. 1 b. What is the difference between an tangible and intangible asset? 1

Answer 1

Long term Asset	Assets which are not intended for resale or consumption or converted into cash within a short period i.e generally one year from the date of purchase of asset Example: Land, Building Machinery, Plant and equipment etc
Short term Asset	Assets which can be easily liquidate (converted into cash) are called as short term assets Example: Cash, Securities, accounts receivable etc
Tangible assets	Tangible assets are assets which has a physical form and are actively used in production process of the businesses.These cash include any king of physical property such as cash, machinery , plant and equipment etc
Intangible assets	These are non physical assets such as goodwill, trade mark , copy rights, franchises,