An Asset Should Be Recognised in the Financial Statements When

question 30

Multiple Choice

An asset should be recognised in the financial statements when:
(i) an exchange has occurred
(ii) it possesses a cost or other value that can be measured reliably
(iii) it is probable that the future economic benefits embodied in the asset will eventuate.

• A) (i)and (ii)only
• B) (i)and (iii)only
• C) (ii)and (iii)only
• D) (i),(ii)and (iii).

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Definitions:

Straight Rebuys

Recurring purchases of the same goods or services without significant modification or consideration of new suppliers, typically routine for businesses.

Contract Negotiations

The process of discussing and determining the terms of a contract between two or more parties, aiming to reach a mutual agreement that benefits all involved.

Culture

The broad set of knowledge, beliefs, laws, morals, customs, and any other capabilities or habits acquired by humans as members of society.

Country-Of-Origin Effects

The beliefs and associations people in one country have about goods and services produced in another country.