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:

Sales Increase

The rise in the quantity or volume of products sold or revenue generated over a specific period.

Variable Expenses

Costs that vary in direct proportion to changes in the level of production or sales volume, such as materials or sales commissions.

Fixed Expenses

Expenses that remain constant regardless of the amount of goods produced or sold in a brief timeframe, including lease payments, wages, and insurance premiums.

Annual Profit

The net earnings of a company over a one-year period, calculated as revenue minus expenses, taxes, and costs.