ACCA FA · Chapter 2 · Question 9 of 10
Which of the following would meet the Conceptual Framework definition of an asset of a trading company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) An amount owed by a customer for goods already delivered
Explanation
An asset is a present economic resource controlled by the entity as a result of past events. A receivable for goods already delivered is a right to cash arising from a past event (the sale). An order for future delivery is not yet a past event giving a present right, a workforce is not controlled by the entity, and internally generated reputation cannot be reliably separated or measured.
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