Which of the Following Is/are a Criteria for Asset Recognition

question 9

Multiple Choice

Which of the following is/are a criteria for asset recognition under the FASB's and IASB's conceptual framework?

• A)The firm owns or controls the right to use the asset.
• B)The right to use the item arises as a result of a past transaction or exchange.
• C)The future benefit has a relevant measurement attribute that a firm can quantify with sufficient reliability.
• D)all of the above
• E)none of the above

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Definitions:

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Prepaid Insurance

Payments made in advance for insurance coverages, recognized as assets until the coverage period lapses and it then becomes an expense.

Fiscal Year

A one-year period that companies use for accounting and financial reporting purposes, which may or may not coincide with the calendar year.

Unexpired Insurance

The portion of an insurance premium that has not yet been used up and is considered a prepaid expense for the company.