Which of the Following Does NOT Represent an Essential Characteristic

question 42

Multiple Choice

Which of the following does NOT represent an essential characteristic of an asset?

• A) They represent a present economic resource.
• B) The entity is able to transfer the economic benefit if it so chooses.
• C) The entity has control over the resource.
• D) The resource results from a past transaction or event.

Grasp the concepts related to dividends, corporate profits, and tax statuses of corporations.

Understand the process and requirements for corporate incorporation and the implications of state incorporation statutes.

Comprehend the management structure of corporations and the role of shareholders, directors, and officers.

Identify the legal documents necessary for corporate formation and operation.

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Definitions:

Unearned Fees

Income received for services that have not yet been performed or delivered.

Monthly Salary

A fixed amount of payment received by an employee from an employer on a monthly basis.

Unused Supplies

Supplies that have been purchased but not yet used in the operation of a business.

Prepaid Insurance

An asset account on the balance sheet that represents a payment made for insurance services that have not yet been received or used up within the period of the insurance contract.