Which of the Following Statements Regarding Assets Is NOT True

question 17

Multiple Choice

Which of the following statements regarding assets is NOT true?

• A) An asset represents a probable future economic benefit.
• B) Assets are obtained or controlled as a result of past or probable future transactions or events.
• C) Assets reported on the balance sheet include both monetary and nonmonetary resources.
• D) Assets include costs that have not yet been matched with revenues.

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Definitions:

Unit Sold

The total number of individual items or products that have been sold by a business during a given period.

Variable Cost

Costs that change in direct proportion to changes in the levels of production or sales activities, such as materials and labor costs.

Relevant Range

The range of activity or volume over which the assumed cost behavior is valid, beyond which cost patterns and relationships may change.

Average Costs

The total costs divided by the number of units produced, giving a per unit cost average.