Tangible operational assets differ from intangible operational assets in that intangible assets have Physical substance whereas tangible assets have no physical substance. On the acquisition date, operational assets are measured and recorded in conformity with the cost principle; and subsequent to acquisition, their cost is depreciated in conformity with the matching principle The straight-line method of depreciation d based on the assumption that depreciation expenses can be regarded as a constant function of time. Under a recent FASB pronouncement, corporations must review long-lived assets for impairment of value, which occurs when the market value of the asset falls below its book value. If a company has an asset with a book value of $5.0 million and estimates the future cash flows to be received over the asset's remaining life equal to 5.5 million, no Impairment has occurred and no loss would be recognized. The first Step in recording the disposal of a long-lived asset is to update its book value by recognizing depreciation expense for the period of time since the last depreciation adjustment was made. Internally generated goodwill is not recorded, nor reported as an intangible asset. When either the estimated useful life or estimated residual value (or both) of an operational asset are changed, all prior financial statements are reissued reflecting the correction retroactively. Operational assets do not include the following kinds of assets Land held for resale. Plant and equipment in use. Patents in use. Mineral deposits being mined None of the above is correct. Rockwell, Inc., a manufacturing company, is preparing their annual financial statements. Which of the following accounts would not be grouped under operational assets? Buildings Land on which the building is located Equipment Vehicles Finished goods inventory Operational assets that have physical substance are Long-term investments Intangible assets Tangible assets Current assets None of the above is correct