An expenditure qualifies as a(n) _____ if it has the following characteristics: 1.It embodies a probable future benefit.
2)A particular entity can obtain the benefit and control others' access to it.
3)The transaction or other event giving rise to the entity's right to, or control of, the benefit has already occurred.
4)The fair value of the item at the time of initial recognition can be measured with sufficient reliability.
A)asset
B)liability
C)shareholders' equity
D)revenue
E)expense

Question

Quizplus · Accepted Answer

An expenditure qualifies as an asset if it embodies a probable future benefit, a particular entity can obtain the benefit and control others' access to it, the transaction or event giving rise to the entity's right to, or control of, the benefit has already occurred, and the fair value of the item at the time of initial recognition can be reliably measured. Assets are resources owned by the entity and have the potential to generate future economic benefits.

An Expenditure Qualifies as A(n) _____ If It Has the Following