Which of the Following Defines Assets

question 78

Multiple Choice

Which of the following defines assets?

• A) Probable future economic benefits owned by an entity as a result of future transactions.
• B) Probable future economic benefits owned by an entity as a result of past transactions.
• C) Possible future economic benefits owed by an entity as a result of past transactions.
• D) Possible future economic benefits owed by an entity as a result of future transactions.

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Definitions:

Arrow's Impossibility Theorem

A theorem that demonstrates the impossibility of devising a social welfare function that satisfies all of a specified set of reasonable conditions simultaneously.

Majority Rule

A decision-making rule in which policies or choices are decided based on the preference of the majority of participants.

Transitive Preferences

A condition in decision-making where if an individual prefers option A over B, and B over C, then the individual also prefers A over C.

Condorcet

A method of decision making, named after the French mathematician Marquis de Condorcet, that identifies the option that would win a majority of votes in all possible pairings against each of the other options.