Here Are the General Definition and Recognition Criteria for Assets

question 13

Essay

Here are the general definition and recognition criteria for assets. For each criterion, provide the related revenue recognition criteria.
a. The entity gives up the future benefits embodied in the asset.
b. The entity gives up control of the resource and therefore removes the item as an asset.
c. The future inflows of resources (e.g., from accounts receivable)are reasonably measurable.
d. The future inflows of resources (e.g., from accounts receivable)are probable.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together. A positive correlation indicates that as one variable increases, so does the other.

Correlational Hypothesis

A prediction about the existence of a relationship between two variables, without implying causation.

Experimental

Pertaining to a method of research that involves the manipulation of one or more variables to determine their effect on a certain outcome.

Neurotic

Referring to an individual's tendency towards anxiety, depression, or other emotional instability, often as a personality trait.