ACCA Financial Management (F9) Certification Practice Exam

What type of asset is required to be tangible, non-perishable, and identifiable for leasing purposes?

1. Intangible assets

2. Goodwill

3. Tangible assets

4. Real estate

The correct answer is: Tangible assets

The type of asset that is required to be tangible, non-perishable, and identifiable for leasing purposes is tangible assets. Tangible assets are physical assets that have a defined value and can be quantified, such as machinery, equipment, vehicles, and buildings. For an asset to be suitable for leasing, it needs to be capable of being touched or seen, which is the essence of being tangible. This also means that the asset can be easily valued and its condition assessed. Non-perishable indicates that the asset has a useful life that extends over several years and does not degrade quickly, making it viable for long-term leasing agreements. Identifiability means that the asset can be distinguished from other assets, often through its unique physical characteristics or identification numbers which is critical for lease agreements and accounting purposes. In contrast, intangible assets like goodwill are non-physical and do not meet the requirements of being tangible or identifiable in the same way. Likewise, real estate, while a tangible asset, is often considered in a broader category separate from equipment or vehicles usually associated with leasing rather than determining suitability based on the attributes mentioned. Therefore, tangible assets are the correct choice for this context.