The Cost of Property,plant and Equipment Is Only Recognised as an Asset

question 8

Multiple Choice

The cost of property,plant and equipment is only recognised as an asset if it is probable that the future economic benefits will flow to the entity and if:

• A)the cost can be reliably measured
• B)the asset has been fully paid for in cash
• C)the asset has been received by the purchaser
• D)it is a tangible asset.

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Definitions:

Back Matter

The final sections of a book, which may include appendices, glossaries, indexes, and bibliographies.

Primary Purposes

Primary purposes are the main objectives or reasons for which something is created, done, or exists.

Decision Matrix

A tool that helps in evaluating and prioritizing a list of options or alternatives based on a set of criteria.

Discussion

an interactive exchange of ideas and opinions among a group of people or between individuals.