s it true that legal enforceability of a right, for example ownership, is necessary for control over an economic resource to exist?
s it true that legal enforceability of a right, for example ownership, is necessary for control over an economic resource to exist?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Is it true that legal enforceability of a right, for example ownership, is necessary for control over an economic resource to exist?
Transcribed Image Text:right, while the liability is the obligation, rather than the
ultimate inflows or outflows of economic benefits resulting
3. Legal enforceability of a right, for example ownership, is
2. According to the revised Conceptual Framework, the asset is the
4. According to the revised Conceptual Framework, an asset can
2. Informe
decision
from the asset or liability.
Rel
a.
necessary for control over an economic resource to exic
Fait
b.
3. When
conside
the
exist even if the probability that it will provide inflows o
future economic benefits is low, and even if the asset is sukiea
to a high measurement uncertainty.
5. According to the revised Conceptual Framework, what the entis
controls is the right, and not the ultimate inflows of future
economic benefits that the economic resource may produce.
6. The Conceptual. Framework defines income and expenses in
terms of changes in assets and liabilities.
7. Not all items that meet the definition of a financial statement
a.
dec
b. the
the
C.
d. ca
4. This q
necessa
element are recognized; they are recognized only if
recognizing them will also result in relevant and faithfully
represented information.
8. Measuring an asset at historical cost will always result in the
same carrying amount of the asset from period to period.
9. According to the 'Conceptual Framework, amortized cost
measurement relates to historical cost, rather than current
a.
Ve
b. Fai
5. Which
inform
a. Ma
b. Ma
value.
с.
Us
10. Although the use of a single measurement basis improves the
understandability of the financial statements, this may not
always lead to useful information. Thus, the Standards require
different measurement bases for different assets, liabilities,
income and expenses.
tra
d. Co
to
6. Inform
knowl
PROBLEM 3: MULTIPLE CHOICE
conser
1. According to the Conceptual Framework, these are
qualitative characteristics that make information useful
a parti
a.
Re
b. Fa
users.
a. Fundamental
b. Enhancing
c. RelevanceU
d. Comparability
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education