Question

The fundamental difference between identifiable and unidentifiable assets is whether the assets are separable from the business.

Select one:
A. True
B. False

Answer 1

Identifiable assets are separable from the business and can be transferred or sold, while unidentifiable assets, like goodwill, cannot be separated and are intrinsic to the business entity.

Step-by-step explanation:

The statement 'The fundamental difference between identifiable and unidentifiable assets is whether the assets are separable from the business' is True. Identifiable assets are those that can be separated from the company and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract. Examples include patents, copyrights, and real estate. On the other hand, unidentifiable assets, often referred to as goodwill, cannot be separated from the business because they do not exist independently; they are inherent to and intertwined with the business entity itself.