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:

Functional Conflict

Functional conflict involves disagreements or disputes that lead to positive outcomes, such as enhanced problem-solving, creativity, and improved group performance.

Better Awareness

Improved recognition and understanding of one's environment, emotions, or the implications of actions.

Aggressive Acts

Actions characterized by hostility or violence, intended to dominate or inflict harm on others.

Jurisdictional Ambiguities

Refers to situations where it is unclear which legal authority or set of rules applies, leading to confusion or conflict.