The Recognition Criteria That an Asset Must Meet Before It

question 23

Multiple Choice

The recognition criteria that an asset must meet before it may be recognised and presented in the financial statements includes:

• A) results from a past event.
• B) having physical substance.
• C) relevant to management decision making.
• D) verifiability.

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Definitions:

Tracking

The act of monitoring and recording the movement or progress of an object or trend over a period of time.

Interesting Sound

A noise or tone that captures attention due to its unique, pleasing, or intriguing qualities.

Perceptual Constancy

The tendency of perceiving objects as unchanging (having consistent colors, brightness, shape, and size) even as illumination and retinal images change.

Monocular

Referring to or involving one eye.