For a firm to recognize an asset
A)a resource must represent a future economic benefit that the firm controls as a result of a past transaction or exchange.
B)the firm must be able to measure the resource with sufficient reliability.
C)must impose a future economic sacrifice because of a past event or transaction that the firm has little or no discretion to avoid.
D)Both choices a and b are correct.
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

For a firm to recognize an asset, it must represent a future economic benefit that the firm controls due to a past transaction (A), and the firm must be able to measure the resource with sufficient reliability (B). Therefore, both A and B are correct.

For a Firm to Recognize an Asset