Which of the following statements are true? Please select all that apply.
A) An asset represents a store of future economic benefits, the ability to use the asset to generate cash and profit for a business.
B) Non-current assets are held for short-term use within a business to produce goods or services.
C) The IASB defines an asset as "a present economic resource controlled by the entity as a result of past events."
D) Total assets = total liabilities + equity.

Question

Quizplus · Accepted Answer

A) An asset indeed represents future economic benefits for a business.  C) The IASB defines an asset as a present economic resource controlled by the entity due to past events.  D) The accounting equation is total assets = total liabilities + equity.  B) is incorrect because non-current assets are held for long-term use, not short-term.

Which of the Following Statements Are True? Please Select All