__________ is defined in the Conceptual Framework as ‘a present obligation of the entity to transfer an economic resource as a result of past events’. Select one alternative: Expense Income Asset Liability
Q: one or more of the following statements are characteristics of assets: a. a probable future benefit…
A: Assets are those resources whether tangible or intangible, current or fixed have an economic value…
Q: A resource owned by the business with purpose of using it for generating future profit, is known as…
A: Assets: Anything of worth or a resource of value that may be turned into cash is referred to as an…
Q: Which of the following are recognized in other comprehensive income? service cost
A: The other comprehensive income includes the revenues and expenses of the company. The assets and…
Q: Discuss with examples TWO (2) indicators that may require an entity to reduce the value of their…
A: impairment of assets - impairment loss refers to a reduction in the value of assets of the company,…
Q: Which of the following does define investment property? a. Property held to earn rentals b. Right…
A: An investment property is first valued at its purchase price. The lower of the fair value of the…
Q: When recognizing revenue, a company has satisfied its performance obligation when the company has O…
A: The concept of Revenue recognition applies to both goods and services.
Q: All changes in an entity's exonomic resources and claims to those resources result frim the entity's…
A: Changes in economic resources and claims: Changes in a reporting entity's economic resources and…
Q: What account is credited when a company receives donated assets? What is the rationale for this…
A: When a company receives donated assets and if the company is a for-profit company then 'Contribution…
Q: Statement 1: When an item of asset is transferred to and from the classification investment…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Which of the following is not a condition that must be satisfied before interest capitalization can…
A: Capitalized Interest: Interest is usually paid on the amount borrowed and it is shown as an expense…
Q: rder for an asset to be recognized in the financial statements, which of the following definition is…
A: The IASB ( International Accounting Standard Board) have the responsibility of developing IFRS ,…
Q: How does the Conceptual Framework define an asset? Select one alternative A resource to which…
A: Introduction : The conceptual frameworks can be understood as the textual or graphical depiction of…
Q: What do statutes and accounting rules mandate about assessing an asset's span of economic value?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: The historical cost principle provides that: Select one: O a. the recorded amount of an acquired…
A: Accounting principles are the rules required to be followed by the company in the process of…
Q: A provision shall be recognized when except * it is probable that an outflow of resources embodying…
A: A provision is an account set off for any obligation which can occur in future. In other words, a…
Q: Which of the following is not part of the definition of an asset O a. Control of a resource O b.…
A: Asset can be defined as a resource controlled by the entity as a result of past events from which…
Q: Which of the following statements about the FASB conceptual framework, as compared to the IASB…
A: Accounting standards are the standards set by the authorized body of each country in various field…
Q: Income earned from incidental operations before an asset is put to use is: deducted from the…
A: Incidental Revenue - Incidental revenue can be earned anytime during or before the assets put to use…
Q: one of the following is a definition of asset: a- a present economic resource controlled by the…
A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…
Q: As per the ________, the entity will remain in operation for the foreseeable future.
A: Going concern assumption represents that the company would continue to operate business. It would be…
Q: An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when *…
A: Borrowing costs are costs that are incurred for borrowing money for the purpose of acquisition,…
Q: 19 - What is the monetary expression of the rights of third parties lending to the enterprise over…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: What temporary capital records are found in the income statement? Revenue and Expenses Revenue and…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The purpose of providing for depreciation in the statement of comprehensive income is to: O a.…
A: Depreciation refers to a decrease in value of asset over its useful life due to factors such as…
Q: Where the payment of an investment property is deferred beyond normal credit terms, how should the…
A: Property, plant, and equipment are tangible fixed assets. These are depreciable assets which mean…
Q: 1. How do we decide whether to capitalize (record as an asset) or expense a particular cost? 2.…
A: ANSWER Cost: The cost of the long-lived assets refers to all the expenditures made in order to…
Q: The types of assets that qualify for interest capitalization are Assets that are ready for their…
A: Interest capitalization means the amount of interest which is added in the cost of asset instead of…
Q: requirements of the principle of recognition and A qualifying asset is an asset that meets the an…
A: Asset is the property which the company is having or the property which company owns. Like the plant…
Q: Access the glossary (“Master Glossary”) to answer the following. a. What does it mean to…
A: Answer: To capitalize an item means to use the item for the long term in the business and disclose…
Q: Statement 1: When an item of asset is transferred to and from the classification investment…
A: Only two of the Statements are true.
Q: A right of use asset is initially measured at costs and subsequently measured using the A. Cost…
A: An asset is the resource owned by the company for using it in the future.
Q: Explain the meaning of an impairment of an asset. Provideseveral examples. What accounting event…
A: Impairment of assets: Impairment of the asset arises when the current market value of the asset…
Q: In order for an asset to be recognized in the financial statements, which of the following…
A: Asset refers to the kind of resource that could easily be converted into cash and it includes…
Q: How do we decide whether to capitalize (record as an asset) or expense a particular cost?
A: Expensing a cost implies that it is included on the income statement and is subtracted from revenue…
Q: To carry the value of the asset at its cost or historical value to the statement of financial…
A: The basic assumptions, rules, or conditions specifying the constraints for the working of accounting…
Q: Which of the following features of an asset closely links its definition to the scien Economics? A.…
A: Asset refers to any resource which is owned or controlled through the business and it is anything…
Q: A) Differentiate between the ‘definition of assets’ and ‘recognition criteria of assets’ provided in…
A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Identity the economic resource that has the ability to give economic benefits___________ a. Capital…
A: Asset is an economic resource that has the ability to give economic benefits... option D asset is…
Q: An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when O…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: ide a
A: As per the IAS 36 Impairment of asset we need to identify the asset that may be impaired and for…
Q: Identify the economic resource that has the ability to give economic benefits. a. Expense b.…
A: Economic resources are those resources that provide benefits to the organization through generating…
Q: Choose the correct. Under IFRS, when an entity chooses the revaluation model as its accounting…
A: When an entity chooses the revaluation model as its accounting policy for measuring property, plant,…
Q: Borrowing costs that are acquisition, construction or production of a qualifying asset are a…
A: IAS 23 borrowing cost says that if any interest is paid on a loan, which is taken to construct a…
Q: Distinguish between the “cost model” and “fair value” model of accounting for investment property.
A: Investment property is land or a building (including a part of a building) or both that is: →held to…
Q: Recall the definition of assets: probable economic benefits obtained or controlled by a particular…
A: Lease: It is a legal contract between two or more parties for renting a property, land, or any other…
Q: Determine the amount of recognized gain or loss. Explain whether the gain or loss is capital or…
A: Recognized Gain/loss on asset = 325,000+196,000-605,000-27,000+315,000 = 204,000
__________ is defined in the Conceptual Framework as ‘a present obligation of the entity to transfer an economic resource as a result of past events’.
Select one alternative:
- Expense
- Income
- Asset
- Liability
Step by step
Solved in 3 steps
- Which of the following statement best defines an asset? a. An asset is a resource owned by the entity with a financial value b. An asset is resource controlled by the entity from which future economic benefits are expected to be generated c. An asset is a resource controlled by an entity because of past events d. An asset is a resource controlled by an entity as a result of past events from future economic benefits are expected to be generatedHow does the Conceptual Framework define an asset? Select one alternative A resource to which an entity has a future commitment as a result of past events and from which future economic benefits are expected to flow from the entity A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource owned by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource over which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entityWhich of the following is not part of the definition of an asset O a. Control of a resource O b. Resulting from a past event O c. Inflow of economic benefits Od. During the accounting period
- In order for an asset to be recognized in the financial statements, which of the following definition is consistent with the IASB framework? Select one: a. Asset is a resource controlled by the entity from which future economic benefits are expected to flow to the entity. b. Asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. c. Asset is a resource controlled by the entity as a result of future events and from which future economic benefits are expected to flow to the entity. d. Asset is a resource controlled by the entity as a result of present events and from which future economic benefits are expected to flow to the entity.All changes in an entity's exonomic resources and claims to those resources result frim the entity's financial performanceone or more of the following statements are characteristics of assets:a. a probable future benefitb. a particular entity obtains the benefit and control others’ access to itc. does not give the rise to the entity to control the benefitd. a +b
- 29. _____________ are the entity’s present obligations arising from past events, the settlement of which is expected to result in an outflow of resources from the entity. a. Assets b. Expenses c. Liabilities d. IncomeIdentity the economic resource that has the ability to give economic benefits___________ a. Capital b. Liability c. Expense d. AssetIdentify the economic resource that has the ability to give economic benefits. a. Expense b. Liability c. Capital d. Asset
- Which of the following would not explain the difference between current and non-current assets? A.The future benefit of current assets will generally be used up within the entity's operating cycle B.An expenditure is classified as a non-current asset if it is considered to be material C.The nature and intention of the business can help determine whether an expenditure should be classified as a non-current asset D.An asset is classified as non-current if it is intended to be used within the business for a considerable period of timeWhat is the meaning of the following:- IAS 40 paragraph 32A, An entity may: (a) choose either the fair value model or the cost model for all investment property backing liabilities that pay a return linked directly to the fair value of, or returns from, specified assets including that investment property; and (b) choose either the fair value model or the cost model for all other investment property, regardless of the choice made in (a).Which two models may an entity opt for when accounting forinvestment property?
