An asset posses which of the following?
Correct answer: D. Future economic benefits for the business
- A. Merits and Demerits for the business
- B. All kind of benefits for the business
- C. Expenses for the business
- D. Future economic benefits for the business
Explanation
An asset is a resource controlled by the business that is expected to provide future economic benefits, such as cash inflows or service potential. Expenses reduce benefits, while merits and demerits are not accounting definitions of an asset.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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