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A characteristic essential to all assets is:a result of a past event.a resource controlled by the entity.a present economic resource.all of the options listed

Question

A characteristic essential to all assets is:

  • a result of a past event.
  • a resource controlled by the entity.
  • a present economic resource.
  • all of the options listed
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Solution

A characteristic essential to all assets is: "all of the options listed."

Here's why:

  1. "A result of a past event." - This is correct. An asset is recognized in the financial statements when it is probable that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably. This usually results from a past transaction or event.

  2. "A resource controlled by the entity." - This is correct. An 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.

  3. "A present economic resource." - This is correct. An asset is a present economic resource controlled by the entity as a result of past events.

  4. "All of the options listed." - This is correct. All of the options listed are characteristics essential to all assets.

This problem has been solved

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