Which of the following does NOT represent an essential characteristic of an asset?
A) They represent a present economic resource.
B) The entity is able to transfer the economic benefit if it so chooses.
C) The entity has control over the resource.
D) The resource results from a past transaction or event.

Question

Quizplus · Accepted Answer

The ability to transfer the economic benefit is not an essential characteristic of an asset. An asset is defined by its present economic resource to the entity, control over the resource by the entity, and origination from a past transaction or event. The transferability of the economic benefit, while often possible, is not a defining characteristic.

Which of the Following Does NOT Represent an Essential Characteristic