Arguments in Favour of Including 'Exchangeability' as an Essential Criterion

question 26

Multiple Choice

Arguments in favour of including 'exchangeability' as an essential criterion for the identification of an asset under the IASB (AASB) Framework include which of the following?

• A)That assets should be separable from the entity and have a separate disposal value
• B)That exchange is only one way to obtain the benefit of an asset
• C)That economic value depends upon scarcity and utility,but not on exchangeability
• D)None of the above are arguments in favour of including exchangeability as an essential characteristic of an asset.

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Definitions:

Long-Term Contracts

Agreements between parties for the supply of goods, services, or employment that extend over a long period.

Quantity of Output

Relates to the total amount of goods or services produced by a firm, industry, or economy within a specific time period.

Expected Price Level

The anticipation or forecast of the average level of prices of goods and services in the economy in the future.

Short-Run Aggregate Supply

Short-Run Aggregate Supply represents the total production of goods and services in an economy at a specific time, considering variable production costs and fixed capital.