FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Question
Chapter 2, Problem 1MC
To determine
Identify the condition that is required to record an item as an asset.
Expert Solution & Answer
Answer to Problem 1MC
Option (d)
Explanation of Solution
Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the
Justification for the given options:
- a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
- b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
- c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
- d. Assets are expected to yield the future benefits. Therefore, this option is correct.
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Students have asked these similar questions
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
The historical cost principle provides that:
Select one:
O a. the recorded amount of an acquired item should be the fair market value of the item.
b. None of the answers are correct
O c. tems whose costs are insignificant compared to other amounts on the financial statements may be accounted for in the
most expedient manner.
O d. assets and equities be expressed in terms of a common denominator.
O e. the expenses of generating revenue should be recognized in the same period that the related revenue is recognized.
Which one of the following is an essential characteristic of an asset?
A. The inflow of future economic benefits is controlled by the enterprise
B. It must be exclusively owned and must be exchangeable
C. The cost of the asset can be measured accurately
D. It is a result of either a past or predictable transaction or activity
Chapter 2 Solutions
FINANCIAL ACCOUNTING
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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