PRC-1 · Chapter 1 · Question 6 of 100
According to the conceptual framework of accounting, which of the following is the most accurate definition of an asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A present economic resource controlled by the entity as a result of past events.
Explanation
The conceptual framework formally defines an asset as a present economic resource controlled by the entity as a result of past events. It is not merely something 'owned', as control is the key factor.
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