In terms of the conceptual framework, an asset is recognised on a balance sheet if it:
A) is capable of reliable measurement and it is probable that the asset will be realised.
B) is owned by the entity and is capable of reliable measurement.
C) results from a past event and is owned by the entity.
D) provides future economic benefits.

Question

Quizplus · Accepted Answer

According to the conceptual framework, an asset should be recognised on the balance sheet if it meets two criteria: it is capable of reliable measurement and it is probable that the asset will be realised. The other options, while partially correct, do not fully capture the criteria for recognising an asset on the balance sheet.

In Terms of the Conceptual Framework, an Asset Is Recognised