Which of the Following Is One of the General Criteria

question 118

Multiple Choice

Which of the following is one of the general criteria for recognizing an asset?

• A)The item must have future economic benefits.
• B)The item must have an indefinite life.
• C)The item must be tangible.
• D)The item must be material.

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Definitions:

Units

The individual items or quantities, often used in the context of production, inventory, or sales.

Net Operating Income

The total profit of a company after operating expenses are subtracted but before deducting interest and taxes.

Planning Budget

A budget prepared for a specific level of activity; it outlines the expected revenues, expenses, and resource requirements for that activity level.

Tenant-Days

A metric used in property management to represent the total number of days in a period that rental units were occupied.