Identify the condition that is required to record an item as an asset.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

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Answer 5

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

Answer 6

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

Answer 7

Chapter 2, Problem 1MC

To determine

Identify the condition that is required to record an item as an asset.

Answer 8

Expert Solution & Answer

Answer to Problem 1MC

Option (d)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Justification for the given options:

a. Asset must be owned and controlled by the company. Therefore, this option is incorrect.
b. Future benefits can be reliably measured from an asset. Therefore, this option is incorrect.
c. Assets are classified as current, non-current (plant, property, and equipment, and intangible assets). Therefore, this option is incorrect.
d. Assets are expected to yield the future benefits. Therefore, this option is correct.

Answer 12

Ch. 2 - Prob. 1MC Ch. 2 - Prob. 2MC Ch. 2 - Prob. 3MC Ch. 2 - Prob. 4MC Ch. 2 - Prob. 5MC Ch. 2 - Prob. 1Q Ch. 2 - Prob. 2Q Ch. 2 - Prob. 3Q Ch. 2 - Prob. 4Q Ch. 2 - Prob. 5Q

Identify the condition that is required to record an item as an asset.

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Identify the condition that is required to record an item as an asset.

Answer to Problem 1MC

Explanation of Solution

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Chapter 2 Solutions