The key characteristic used by the Framework to define an asset is:
A) saleability
B) type of item
C) ability to generate future economic benefits
D) ability to generate future cash flows

Question

Quizplus · Accepted Answer

According to the Framework, an asset is defined as a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity. Therefore, the key characteristic used to define an asset is its ability to generate future economic benefits. The other options (saleability, type of item, ability to generate future cash flows) may be relevant in specific contexts, but they are not the defining characteristic of an asset according to the Framework.

The Key Characteristic Used by the Framework to Define an Asset