Which of the Following Statements About Assets Is NOT True

question 16

Multiple Choice

Which of the following statements about assets is NOT true?

• A) Assets provide future economic benefits.
• B) Assets are economic resources controlled by an organisation.
• C) Assets result from past transactions or other events.
• D) Assets are recorded at the amount they can be sold for.

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Definitions:

Friendly Merger

A type of corporate acquisition or consolidation that occurs with mutual agreement and cooperation between the companies involved.

Expected Growth

The anticipated increase in value or size of an investment, company, or economy over a specific period.

Synergies

The benefits that result when two or more entities (such as companies) combine to produce a greater value than they could independently.

Return Of Stockholders

Rephrased as the gains or losses realized by investors in a company's shares, reflecting the performance of the investment over time through price appreciation and dividends.