Which Is Not a Characteristic of an Asset

question 28

Multiple Choice

Which is not a characteristic of an asset?

• A)The resource must be useful only in the entity's activities and have been acquired by purchase, production, or stockholder investment.
• B)The entity must be able to obtain the future benefit and control others' access to it.
• C)The transaction or event giving rise to the entity's right to or control over the benefit must have already occurred.
• D)The resource must singly, or in combination with other resources, have the capacity to contribute directly, or indirectly, to the entity's future net cash inflows.

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Definitions:

Employee Selection

The process of identifying and hiring the most suitable candidates for positions within an organization based on criteria and assessments.

Current Employees

Individuals who are actively employed and working for an organization at the present time.

80 Percent Rule

A guideline in human resources indicating a test is considered to have adverse impact if the selection rate for a minority group is less than 80% of the rate for the group with the highest selection rate.

Adverse Impact

The unintended and negative effects of a company's policies, practices, or procedures on certain groups of employees or potential employees.