Under the Conceptual Framework Exposure Draft, the proposed definition of an 'economic resource' would be:
A) a right that is exchanged for cash.
B) a right that provides benefits to the entity.
C) a right that resulted from a past event.
D) a right that has the potential to produce economic benefits.

Question

Quizplus · Accepted Answer

The proposed definition of an economic resource under the Conceptual Framework Exposure Draft is described as a right that has the potential to produce economic benefits. Option A refers to a specific exchange whereas a resource could be any right. Option B is too broad and could include non-economic resources. Option C is too narrow as it only applies to assets and not all economic resources.

Under the Conceptual Framework Exposure Draft, the Proposed Definition of an 'Economic