Which of the Following Is One of the General Criteria

question 118

Multiple Choice

Which of the following is one of the general criteria for recognizing an asset?

• A)The item must have future economic benefits.
• B)The item must have an indefinite life.
• C)The item must be tangible.
• D)The item must be material.

---

Definitions:

Current Accounting Regulations

The prevailing rules and standards that govern how financial records are maintained and reported, varying by jurisdiction and overseen by regulatory bodies.

Non-current Assets

These are assets held for long-term use in a business, not expected to be converted into cash within one year, such as property, plant, and equipment.

Separate Disclosures

Financial statement notes or sections that provide additional detail on specific items not fully explained within the main financial statements.

Depreciation Expense Adjustment

Accounting practice of spreading out the cost of a tangible asset over its useful life.