Which of the Following Statements About Assets Is NOT True

question 12

Multiple Choice

Which of the following statements about assets is NOT true?

• A) Assets provide future economic benefits.
• B) Assets are controlled by an organisation.
• C) Assets result from past transactions or other events.
• D) Assets are recorded at the amount they can be sold for.

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Definitions:

Partnership Capital

The total amount of capital contributed by partners in a partnership, used in the business and subject to changes from profits, losses, and withdrawals.

Capital Balances

Refers to the amount of money that the owners of a company have invested in it.

Goodwill Method

An accounting method used to determine the value of a non-tangible asset acquired when one company buys another.

Profits and Losses

Financial terms representing the positive or negative financial outcomes resulting from a company's operations and activities.