DOWNLOAD THE Test Bank for Accounting for Business 3rd Edition Scott
Scott: Accounting for Business, 3rd edition
Correct answers are marked with an asterisk (*).
Topic: Asset definition
Type: multiple choice question
Title: Chapter 02 - Question 01
01) Which one of the following statements is the IASB’s definition of an asset?
a. A right that has the potential to produce economic benefits.
Feedback: This is the IASB’s definition of an economic resource, not the IASB’s definition of
an asset.
Page reference: 32-35
b. A present obligation of the entity to transfer an economic resource as a result of past
events.
Feedback: This is the IASB’s definition of a liability not the IASB’s definition of an asset.
Page reference: 32-35, 40-43
*c. A present economic resource controlled by the entity as a result of past events.
Feedback: Well done. You have correctly identified the IASB’s definition of an asset.
Page reference: 32-35
d. A present economic resource that has the potential to produce economic benefits.
Feedback: The IASB defines an asset as “a present economic resource controlled by the
entity as a result of past events.” An economic resource is defined as “a right that has the
potential to produce economic benefits”. While the IASB definition of an asset includes the
words “a present economic resource”, it does not include the words “that has the potential to
produce economic benefits”. The essential asset defining elements of control and of a past
event are missing from this statement.
Page reference: 32-35
Type: multiple choice question
Title: Chapter 02 - Question 02
02) The International Accounting Standards Board’s Conceptual Framework for Financial
Reporting defines an asset as:
a. A resource not purchased for resale in the normal course of business, held for long-term
use in the business to produce goods or services.
Feedback: This is a description of non-current assets, not the IASB Conceptual Framework
definition of an asset.
Page reference: 32-35, 36-38
b. A present obligation of the entity to transfer an economic resource as a result of past
events.
Feedback: This is the IASB Conceptual Framework definition of a liability, not the IASB
Conceptual Framework definition of an asset.
Page reference: 32-35, 40-43
c. A short term resource that is constantly changing.
Feedback: This is a description of current assets, not the IASB Conceptual Framework
definition of an asset.
Page reference: 32-35, 38-39
*d. A present economic resource controlled by the entity as a result of past events.
Feedback: Well done. You have correctly remembered and identified the IASB Conceptual
Framework definition of an asset.
Page reference: 32-35
Type: multiple choice question
Title: Chapter 02 - Question 03
03) Which one of the following statements most accurately describes an asset?
a. Something an entity owes, the value of which can be faithfully represented.
© Peter Scott, 2019.
mynursytest.store
Scott: Accounting for Business, 3rd edition
Correct answers are marked with an asterisk (*).
Topic: Asset definition
Type: multiple choice question
Title: Chapter 02 - Question 01
01) Which one of the following statements is the IASB’s definition of an asset?
a. A right that has the potential to produce economic benefits.
Feedback: This is the IASB’s definition of an economic resource, not the IASB’s definition of
an asset.
Page reference: 32-35
b. A present obligation of the entity to transfer an economic resource as a result of past
events.
Feedback: This is the IASB’s definition of a liability not the IASB’s definition of an asset.
Page reference: 32-35, 40-43
*c. A present economic resource controlled by the entity as a result of past events.
Feedback: Well done. You have correctly identified the IASB’s definition of an asset.
Page reference: 32-35
d. A present economic resource that has the potential to produce economic benefits.
Feedback: The IASB defines an asset as “a present economic resource controlled by the
entity as a result of past events.” An economic resource is defined as “a right that has the
potential to produce economic benefits”. While the IASB definition of an asset includes the
words “a present economic resource”, it does not include the words “that has the potential to
produce economic benefits”. The essential asset defining elements of control and of a past
event are missing from this statement.
Page reference: 32-35
Type: multiple choice question
Title: Chapter 02 - Question 02
02) The International Accounting Standards Board’s Conceptual Framework for Financial
Reporting defines an asset as:
a. A resource not purchased for resale in the normal course of business, held for long-term
use in the business to produce goods or services.
Feedback: This is a description of non-current assets, not the IASB Conceptual Framework
definition of an asset.
Page reference: 32-35, 36-38
b. A present obligation of the entity to transfer an economic resource as a result of past
events.
Feedback: This is the IASB Conceptual Framework definition of a liability, not the IASB
Conceptual Framework definition of an asset.
Page reference: 32-35, 40-43
c. A short term resource that is constantly changing.
Feedback: This is a description of current assets, not the IASB Conceptual Framework
definition of an asset.
Page reference: 32-35, 38-39
*d. A present economic resource controlled by the entity as a result of past events.
Feedback: Well done. You have correctly remembered and identified the IASB Conceptual
Framework definition of an asset.
Page reference: 32-35
Type: multiple choice question
Title: Chapter 02 - Question 03
03) Which one of the following statements most accurately describes an asset?
a. Something an entity owes, the value of which can be faithfully represented.
© Peter Scott, 2019.
mynursytest.store
