6 Questions
What does an asset represent?
A present economic resource controlled by the entity
Why is control an important aspect of an asset?
It determines the entity's ownership of the asset
What is the primary expectation from an asset?
Future economic benefit
Which of the following best describes an asset?
A resource controlled by the entity, arising from past events and expected to yield future economic benefits
What is the primary characteristic of an asset?
It is a present economic resource arising from past events
Why is control an important aspect of an asset?
It indicates the entity has the ability to direct the use of the asset
Test your knowledge of accounting by answering questions about the definition of assets as a present economic resource controlled by the entity, resulting from past events and expected to bring future economic benefits.
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