Question 1

Which of the following is NOT an essential characteristic of an asset?

Accepted Answer

A)  It must be legally owned by the entity. 
B)  The entity must have control over the asset. 
C)  The transaction giving the entity control over the asset must have occurred. 
D)  It is probable that future economic benefits will flow to the entity. 
A)  It must be legally owned by the entity. 
B)  The entity must have control over the asset. 
C)  The transaction giving the entity control over the asset must have occurred. 
D)  It is probable that future economic benefits will flow to the entity.

Question 2

Which accounting concept is involved in the requirement that financial statements contain information that is useful to those who are making decisions?

Accepted Answer

A)  Consistency 
B)  Comparability 
C)  Faithful representation 
D)  Relevance 
A)  Consistency 
B)  Comparability 
C)  Faithful representation 
D)  Relevance

Which of the following is NOT an essential characteristic of an asset?

Which accounting concept is involved in the requirement that financial statements contain information that is useful to those who are making decisions?

Introduction to Financial Accounting

Measuring and Evaluating Financial Position and Financial Performance

The Double-Entry System

Record-Keeping

Accrual Accounting Adjustments

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

Filters

Exam 6: Financial Reporting Principles, Accounting Standards and Auditing

Which of the following is NOT an essential characteristic of an asset?

Which accounting concept is involved in the requirement that financial statements contain information that is useful to those who are making decisions?

Introduction to Financial Accounting

Measuring and Evaluating Financial Position and Financial Performance

The Double-Entry System

Record-Keeping

Accrual Accounting Adjustments

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

Filters