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
Solution
A characteristic essential to all assets is: "all of the options listed."
Here's why:
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"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.
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"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.
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"A present economic resource." - This is correct. An asset is a present economic resource controlled by the entity as a result of past events.
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"All of the options listed." - This is correct. All of the options listed are characteristics essential to all assets.
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