The criteria for asset recognition include(s):
a. the firm owns or controls the right to use the item.
b. the right to use the item arises as a result of a past transaction or exchange.
c. the future benefit has a relevant measurement attribute that can be quantified with sufficient reliability.
d. Answers a, b and c are correct.
e. None of these answer choices is correct.
D
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Which of the following statements is true of performance reporting?
A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information. B) Managers should not be held accountable for uncontrollable variances. C) Only unfavorable variances should be explained in the reports. D) Every variance, regardless of magnitude, must be investigated by the managers.
Which of the following is considered a fraudulent activity?
A. A mistake in gathering or processing accounting data from which financial statements are prepared. B. An incorrect accounting estimate arising from oversight or misinterpretation of facts. C. Misappropriation of assets. D. A mistake in the application of accounting principles relating to amount, classification, manner of presentation, or disclosure.