97Concpteal FramThe economic resource can be distributed to the owners.d. The resource has no use in the entity's operations and hasno resale value12. Which of the following does not meet the definition of anasset?a. Equipment that the entity intends, and is very certain, toacquire in the future.b. Inventories purchased and received but not yet paid.c Land received from a donation.d. A publishing title for a college textbook. The publishingtitle has no physical substance, meaning you cannot see ortouch it.13. Entity A determined that an asset exists. However, the asset'slow probability of inflows of economic benefits and its veryhigh level of measurement uncertainty affected Entity A'srecognition decisions about the asset, as these raised doubt onwhether the asset's recognition would result in usefulinformation. Consequently, Entity A did not recognize theasset, but because Entity A deemed it relevant, informationabout the asset was nonetheless provided in the notes. Whichof the following statements is correct?a. Entity A's accounting treatment is grossly incorrectbecause, according to the Conceptual Franiework, all itemsthat meet the definition of an asset should always berecognized, regardless of the asset's potential to produceeconomic benefits and its measurement uncertainty.b. Entity A's treatment for the asset is acceptable. The assetreferred to as an 'unrecognized' asset.C. Entity A's treatment for the asset is acceptable. The asset isreferred to as a 'non-existent asset.d. Entity A's non-recognition of the asset is correct. However,the asset should have been completely ignored asproviding information about unrecognized items in thenotes is not acceptable under the Conceptual Framework. most likelyatfectthe14. Which of the following willa.inflows or outflows of future economic beneb.asset or liability.An unresolved dispute over a right or obligationc.possibly resuit ina. the recognition of an income.b. the recognition of an expense.c an increase in total equity.d. no change in total equity.PROBLEM 4: MULTIPLE CHOICE1. The Conceptual Framework is least applicable in which of ufollowing cases?a. to account for a transaction that is specitically dealt wiuby a Standardb. in resolving issues not addressed directly by a Standardin developing Standardsd. in analyzing and interpreting StandardsC.2. General purpose financial statements are designed toa. meet all the information needs of the primary users.b. meet all of the common needs of all primary users.meet most of the common needs of most primary users.d. meet none of the needs of users of financial information.C.3. These are users of financial information who are not in aposition to require a reporting entity to prepare reportstailored to their particular information needs.2.) all of the Following ave events considered dl&nhireictim of the entity's own equity instrument (ie. contrihehons by ownes)inidered nonedpocal kansper escept.

Hi student Since there are multiple questions, we will answer only first question.

no resale value 12. Which of the following does not meet the definition of an asset? a Equipment that the entity intends, and is very certain, to acquire in the future. b. Inventories purchased and received but not yet paid. c Land received from a donation. d. A publishing title for a college textbook. The publishing title has no physical substance, meaning you cannot see or touch it.

no resale value 12. Which of the following does not meet the definition of an asset? a Equipment that the entity intends, and is very certain, to acquire in the future. b. Inventories purchased and received but not yet paid. c Land received from a donation. d. A publishing title for a college textbook. The publishing title has no physical substance, meaning you cannot see or touch it.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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