Which of the Following Is an Essential Requirement for an Asset

question 21

Multiple Choice

Which of the following is an essential requirement for an asset to exist for accounting purposes?

• A) An asset must be tangible.
• B) An asset must have been exchanged for another asset.
• C) An asset must be under the control of the entity.
• D) An asset must have been acquired at a cost to the entity.

---

Definitions:

Reduced Costs

refers to decreases in expenses or outlays, often achieved through efficiency improvements, negotiations, or adopting new technologies.

Competitive Advantage

Conditions or aspects that confer on a business a superior or more advantageous situation compared to competitors.

Customized Products

Goods or services specifically tailored to meet the unique preferences or needs of individual customers.

High Quality Standards

The maintenance of excellence and superior standards in products or services.