Which of the Following Is $\underline{not}$ A Formal Definition of Assets That Has Been Used by Assets

question 14

Multiple Choice

Which of the following is $\underline{not}$ a formal definition of assets that has been used by the accounting profession in the US?

• A)Something represented by a debit balance that is or would be properly carried forward upon a closing of books of account according to the rules or principles of accounting, on the basis that it represents either a property right or value acquired, or an expenditure made which has created a property or is properly applicable to the future.
• B)Economic resources of an enterprise that are recognized and measured in conformity with generally accepted accounting principles as well as certain deferred charges that are not resources but that are recognized and measured in conformity with generally accepted accounting principles.
• C)Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
• D)Only those economic resources that can be severed from the firm and sold.

Know the application of generally accepted accounting principles (GAAP) in financial reporting.

Understand the significance of earnings per share and its disclosure requirements.

Recognize the treatment and implications of different revenue and expense categories on financial performance.

Understand the relationship between the income statement, the balance sheet, and the impact of revenue recognition on financial statements.

---

Definitions:

Agoraphobia

An anxiety disorder characterized by the intense fear of places or situations where escape might be difficult or help may not be available.

Panic Attack

An abrupt onset of intense fear or discomfort, marked by physical and psychological symptoms like rapid heartbeat and feelings of unreality or detachment.

Hyperventilate

To breathe more rapidly and deeply than is necessary for normal levels of oxygen, which can result in dizziness, light-headedness, or fainting.

Anxiety

An emotion of stress and anxiety caused by an event whose result is not yet known.