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 generated

As question is MCQ type it will be answered with explanation.

Answered: Which of the following statement best…

Business

Accounting

Which of the following statement best defines an asset?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

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: How to compare different assets in investment selection process? What are the quantitative…

A: One of the important decisions that financial managers are supposed to take is that they have to…

Q: to refer to the degree of uncertainty that the future economic benefits associated with the item…

A: Probability refers to the possibility of a uncertain event take place in the future. Generally, an…

Q: Which of the following is a true statement about the nature of Equipment, account? Multiple Choice…

A: Equipment is a long term asset that is used to generate revenue for the business. The use of asset…

Q: How do you identify an asset with reference to AASB? How should an asset be recognized in the…

A: Step 1 An asset is a tangible or intangible attribute having financial or economic value that an…

Q: When fair value is used in measuring assets in the financial statements, current GAAP provides…

A: (1) Full form of GAAP - Generally Accepted Accounting Principles. (2) It is a collection of the…

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: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

Q: k that could happen during the fixed asset acquisition process and how such risks could impact the…

A: Designated members of management should be assigned responsibility for authorizing the purchase of…

Q: When it comes to accounting for investment property, which of the two models may an organization…

A: This question tells about accounting for investment property:

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: 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: When it is probably that future economic benefits associated with an asset will flow to the entity,…

A: Accounting standard 1 deals with the disclosure of accounting policies which states that the company…

Q: How should research and development expenditure be dealt with in an entity's financial statements?…

A: The accounting for research and development involves those activities that create or improve…

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: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Intangible assets are those which does not have physical substance. It includes copyright, goodwill,…

Q: Which is not within the definition of an intangible asset? A resource from which future economic…

A: Unlike tangible Assets these Intangible Assets are difficult to valuate

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: Matching Type Equity. Intangible assets. Property, plant, and equipment Assets Resources of a…

A: Introduction:- A balance sheet is a statement of assets, liability, and equity. It is prepared after…

Q: The objective of the HRA is to______ a. provide a determination of asset control as to whether human…

A: general objectives of Human resource management - - Attract and retain qualified people - to have…

Q: _____ are the entity’s present obligations arising from past events, the settlement of which is…

A: Solution: Liabilities are the entity’s present obligations arising from past events, the settlement…

Q: Can you explain the importance of the correct determination of an asset’s value and its effect on…

A: Introduction: Financial statements are files that summaries a company's operations and financial…

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: Which of the following are criteria for determining whether to record an asset as a fixed asset?…

A: Fixed asset is defined as anything which is utilized for more than single accounting period and…

Q: For entities that report using IFRS, how are exploration and evaluation assets subsequently…

A: Upon Initial recognition in the statement of financial position, exploration and evaluation assets…

Q: Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring…

A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…

Q: I. IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each…

A: IAS 16 Property, plant, and equipment details the accounting treatment of most types of property,…

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: 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: __________ is defined in the Conceptual Framework as ‘a present obligation of the entity to transfer…

A: The accounting process includes the bookkeeping process which involves the journal entry of the…

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: Which one of the following is an essential characteristic of an asset? A. The inflow of future…

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: As a result of the transaction, what is the effect on the profit or loss? what is the cost of the…

A: On the occasion of disposal/exchange/sale of an asset, the net income of the entity is impacted by…

Q: hen should you present your biological asset as current or non-current asset? Or what is/are the…

A: Biological assets are the ones that are counted as resources in the agriculture business. They are…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

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 generated

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
How 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 entity
How should research and development expenditure be dealt with in an entity's financial statements? a- Research expenditure should always be written off as an expense but development expenditure should always be capitalised as an intangible asset b- Research and development expenditure should always be written off as an expense c- Research expenditure should always be written off as an expense but development expenditure should be capitalized as an intangible asset if it satisfies certain conditions d- Research and development expenditure should always be capitalised as an intangible asset
__________ 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
What is the principle for recognition of a financial asset in PFRS 9? Group of answer choices: A financial asset is recognized when, and only when, the entity obtains the risks and rewards of ownership of the financial asset and has the ability to dispose of the financial asset. A financial asset is recognized when, and only when, the entity obtains control of the instrument and has the ability to dispose of the financial asset independent of the actions of others. A financial asset is recognized when, and only when, it is probable that future economic benefits will flow to the entity and the cost or value of the instrument can be measured reliably. A financial asset is recognized when, and only when, the entity becomes a party to the contractual provisions of the instrument.
Which 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
What do statutes and accounting rules mandate about assessing an asset's span of economic value?
An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when * A. Expenditures for the asset are being incurred. B. Borrowing costs are being incurred. C. Activities necessary to prepare that asset for its intended use or sale are being undertaken. D. All of the above conditions are met.
Which of the following are criteria for determining whether to record an asset as a fixed asset? Group of answer choices A. must be an investment and long lived B. must be long lived and used by the company in its normal operations C. must be short lived and tangible D. must be tangible and an investment
The means by which individuals hold their claims on real assets in a well-developed economy are A) Investment assets. B) Depository assets.C) Derivative assets.D) Financial assets.E) Exchange-driven assets. also give justification for the chosen answer.
one 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
Depending on the business model for managing financial assets, an entity shall classify financial assets subsequent to initial recognition at a. fair value through profit or lossb. Amortized costc. Fair value through other comprehensive incomed. all of these are used in measuring financial assets