Which of the following is/are essential requirements for an asset to exist for accounting purposes?
(i)The entity must be able to control the future economic benefits associated with the item.
(ii)The entity must be the legal owner of the item.
(iii)The entity must have purchased the item.
A) (i)only
B) (i)and (ii)only
C) (i)and (iii)only
D) (ii)and (iii)only.

Question

Which of the following is/are essential requirements for an asset to exist for accounting purposes? 
(i)The entity must be able to control the future economic benefits associated with the item.
(ii)The entity must be the legal owner of the item.
(iii)The entity must have purchased the item.
A) (i)only
B) (i)and (ii)only
C) (i)and (iii)only
D) (ii)and (iii)only.

Quizplus · Accepted Answer

For an asset to exist for accounting purposes, the entity must be able to control the future economic benefits associated with the item. Legal ownership and purchase are not necessary conditions.

Which of the Following Is/are Essential Requirements for an Asset