Which of the Following Is True of Assets

question 42

Multiple Choice

Which of the following is true of assets?

• A) Assets should be recognized only when it is probable that future economic benefits will flow to the enterprise.
• B) Assets should be recognized when it is probable that an outflow of resources will be required to settle them.
• C) Asset is defined as decrease in equity, other than from transactions with owners.
• D) A resource must be owned for it to be recognized an asset of the enterprise.

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Definitions:

Crustal Root

The downward extension of the Earth's crust into the mantle beneath mountain ranges, helping to support the elevation of the mountains above.

Thrust Faults

Type of fault where the hanging wall moves up relative to the footwall, common in areas of compression.

Thrust Sheets

Large segments of the Earth's crust that have been thrust over one another by compressional forces, commonly found in mountainous regions.

Subsidence

The sinking or settling of the Earth's surface, often caused by natural processes such as erosion or human activities like mining.