CAF-1 · Chapter 9 · Question 10 of 15
Which of the following represents an 'economic resource' as defined by the Conceptual Framework?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A right that has the potential to produce economic benefits.
Explanation
An economic resource is defined as a right that has the potential to produce economic benefits, which forms the basis for the definition of an asset.
More Conceptual and Regulatory Framework MCQs
- Q12During times of rising prices, preparing financial statements based strictly on historical cost generally leads to:
- Q13The concept of 'measurement basis' refers to:
- Q14Which of the following is responsible for drafting and approving new International Financial Reporting Standards (IFRS)?
- Q15What is the primary factor limiting the information that can be provided by financial reporting?
- Q1According to the Conceptual Framework, which of the following best defines a 'liability'?