An Expenditure Qualifies as A(n) _____ If It Has the Following

question 88

Multiple Choice

An expenditure qualifies as a(n) _____ if it has the following characteristics: 1.It embodies a probable future benefit.
2) A particular entity can obtain the benefit and control others' access to it.
3) The transaction or other event giving rise to the entity's right to, or control of, the benefit has already occurred.
4) The fair value of the item at the time of initial recognition can be measured with sufficient reliability.

• A)asset
• B)liability
• C)shareholders' equity
• D)revenue
• E)expense

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Definitions:

Behaviorist Principles

A theory in psychology that emphasizes the role of environmental factors in influencing behavior, suggesting that all behaviors are acquired through conditioning.

Binet

A reference to Alfred Binet, a French psychologist who, along with his colleague Théodore Simon, developed the first intelligence test in the early 20th century.

Stanford

A prestigious university located in California, known for its cutting-edge research, especially in technology and medicine.

Galton

Refers to Sir Francis Galton, a 19th-century British polymath known for his contributions to fields such as statistics, psychology, and anthropology.