The Recognition Criteria That an Asset Must Meet Before It

question 12

Multiple Choice

The recognition criteria that an asset must meet before it may be recognised and presented in the financial statements include:

• A) that the recognition of the asset is relevant to user decision making;
• B) probability that future economic benefits will flow to the entity;
• C) that the information about the asset is neutral;
• D) a likelihood that the cost of the asset is verifiable.

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Definitions:

Range Finder

A device or tool used to measure the distance from the observer to a target, commonly used in photography, golf, and surveying.

Cell References

Indicators that point to specific cells in a spreadsheet, used for calculations or to display their contents.

Formula

A mathematical or logical expression entered into a spreadsheet or software that performs calculations based on specified inputs or data.

Format Cells Dialog Box Launcher

A tool in spreadsheet software that opens a dialog box for adjusting the presentation of cell contents, including their format, style, and appearance.