Which of the Following Is NOT One of the Recognition

question 24

Multiple Choice

Which of the following is NOT one of the recognition criteria contained within IAS 41 in relation to recognition of a biological asset or agricultural produce as an asset?

• A) the asset has physical form
• B) the entity controls the asset as a result of past events
• C) it is probable that future economic benefits associated with the asset will flow to the entity
• D) the fair value or cost can be reliably measured

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Definitions:

Preferred Stockholders

Investors who own shares of preferred stock in a company, typically entitled to dividends before common stockholders and having priority in assets upon liquidation.

Board Of Directors

A group of individuals elected by shareholders to oversee and make strategic decisions for a corporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Contra Account

An account used in accounting to reduce the value of a related account when the two are netted together, providing a clearer picture of financial status.