According to the Conceptual Framework,recognition of an Asset Occurs If

question 8

Multiple Choice

According to the Conceptual Framework,recognition of an asset occurs if it is probable that future economic benefits will flow to the entity and:

• A)it has a value that can be measured with reliability.
• B)it is a non-current asset.
• C)it has a value that can be measured with certainty. d,it is a current asset.

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Definitions:

Insurance Industry

A sector of the financial services market that provides risk management through contractually agreed-upon financial protection against losses.

Capital at Risk

The amount of capital that could be lost in an investment due to risk factors.

Company's Liabilities

Financial obligations a company owes to outside parties, including debts, loans, and other forms of financial liabilities.

Efficient Market

A market in which prices fully reflect all available information and assets are priced accurately.