Which of the Followings Are the Three Essential Criteria in the Definition

question 24

Multiple Choice

Which of the followings are the three essential criteria in the definition of an asset?
$\begin{array}{ll}\text { I. Future economic benefits}&\text {IV.Present obligation }\\\text {II.Future sacrifices of economic benefits. }&\text {V. Control. }\\\text {III.Past event }&\text{VI.Ownership} \\\end{array}$

• A) I, III, IV.
• B) II, III, V.
• C) I, IV, VI.
• D) I, III, V.

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Definitions:

Impaired Asset

An asset that has a market value significantly below its carrying amount on the balance sheet, indicating that recoverable amount is less than its book value, necessitating a write-down.

Depreciation Expense

The monetary value reduction in an asset's cost over its useful life due to wear and tear, age, or obsolescence.

Book Value

The net value of an asset according to its balance sheet account balance, calculated as the original cost minus accumulated depreciation.

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.