BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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PRESENT ECONOMIC RESOURCE
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ECONOMIC RESOURCE IS A RIGHT THAT HAS THE POTENTIAL TO PRODUCE ECONOMIC BENEFITS
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ECONOMIC RESOURCE IS CONTROLLED BY THE ENTIY AS A RESULT OF PAST EVENTS
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ALL OF THESE CHARACTERIZE AN ASSET
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Detailed explanation-1: -The four enhancing qualitative characteristics continue to be timeliness, understandability, verifiability and comparability.
Detailed explanation-2: -The revised conceptual framework describes how information should be presented and disclosed in the financial statements. The concepts on derecognition specifies guidance on derecognition of assets and liabilities to faithfully represent both assets and liabilities.
Detailed explanation-3: -The fundamental qualitative characteristics are relevance and faithful representation. Relevant financial information is capable of making a difference in the decisions made by users.
Detailed explanation-4: -The conceptual framework describes four additional qualitative characteristics that should enhance the usefulness of information that is already determined to be relevant and faithfully represented. These characteristics are comparability, verifiability, timeliness, and understandability.