A Recognition Criterion for Assets Is That the Entity Reporting

question 19

Multiple Choice

A recognition criterion for assets is that the entity reporting them should have control (but not necessarily ownership) of them.Heritage assets often have features that make the establishment of control difficult.These features include:

• A) The interrelationships between legislation and regulations governing heritage assets may make it difficult to establish which government agency has ultimate control over the asset.
• B) It can be difficult to control access to a range of heritage assets.
• C) The government agency with responsibility for the heritage asset may be restricted in what it may do with the asset.
• D) The interrelationships between legislation and regulations governing heritage assets may make it difficult to establish which government agency has ultimate control over the asset; and the government agency with responsibility for the heritage asset may be restricted in what it may do with the asset.
• E) All of the given answers.

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Definitions:

Consumption

denotes the act of using goods and services for personal or collective needs, often a major component of GDP.

Consumption Function

It is an economic formula representing the relationship between total consumption and gross national income, suggesting that consumption patterns are directly related to income levels.

Disposable Income

Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

Interest Rate

The cost of borrowing money, expressed as a percentage of the total amount loaned.