Which Is Not a Characteristic of an Asset

question 28

Multiple Choice

Which is not a characteristic of an asset?

• A)The resource must be useful only in the entity's activities and have been acquired by purchase, production, or stockholder investment.
• B)The entity must be able to obtain the future benefit and control others' access to it.
• C)The transaction or event giving rise to the entity's right to or control over the benefit must have already occurred.
• D)The resource must singly, or in combination with other resources, have the capacity to contribute directly, or indirectly, to the entity's future net cash inflows.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at different prices.

Price Elasticity

The measure of how much the quantity demanded or supplied of a good changes in response to a change in its price. It reflects the sensitivity of consumers or producers to price changes.

Unit Price Elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

Total Revenue

The total revenue a company earns from selling its goods or services before deducting any expenses or costs.