Employee Benefits Can Be Allocated to Assets

question 14

Multiple Choice

Employee benefits can be allocated to assets:

• A) only if it relates to the cost of an internally generated intangible
• B) where the entity is certain the future economic benefits will flow to it
• C) in accordance with the requirements of other accounting standards
• D) where they meet the definition of an asset under the Conceptual Framework

---

Definitions:

Prior Commitment

The psychological state or condition of being previously dedicated or bound to a particular belief, action, or course of behavior.

Group's Status

The relative standing or prestige of a group within a social or organizational context.

Unanimous

Complete agreement among all members or participants.

Asch Conformity Test

An experiment designed by Solomon Asch which demonstrates the power of conformity in groups, where individuals often agree with an incorrect majority opinion.