Which of the Following Is NOT an Essential Characteristic of an Asset

question 14

Multiple Choice

Which of the following is NOT an essential characteristic of an asset?

• A) It must be legally owned by the entity.
• B) The entity must have control over the asset.
• C) The transaction giving the entity control over the asset must have occurred.
• D) It is probable that future economic benefits will flow to the entity.

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Definitions:

Relatively Elastic

Describes a situation where demand for a product is sensitive to changes in its price, meaning consumers will significantly reduce or increase their demand based on price changes.

Sensitive

Responsive or easily affected by external conditions or stimuli.

Economic Theory

A concept or principles developed to explain how economies work and how economic agents interact.

Substitute Goods

Goods or services that act as substitutes for each other, meaning that if the price of one goes up, the demand for the other also rises.