Which is the most important characteristic that all assets of a business have?
Correct answer: A. Future economic benefits
- A. Future economic benefits
- B. Value of assets
- C. Intangible nature of assets
- D. Long life of assets
Explanation
An asset is recognised because it is expected to provide future economic benefits controlled by the business. Long life, monetary value, and intangible nature are not requirements shared by every 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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