Question 1 Question 9

A right can meet the definition of an economic resource, and Income and expense are derecognized when they no longer
hence can be an asset, even if the probability that it will meet the definition of this elements.
produce economic benefits is low. - False
 -True  
    
  Question 10
Question 2 A high level of measurement uncertainty associated with an
There is a close association between incurring expenditure and asset always results in the asset not being recognized.
acquiring assets, thus the two necessarily coincide. - False
- False  
   
  Question 11
Question 3 An economic resource could produce economic benefits for an
Not recognising an item that meets the definition of one of the entity by entitling or enabling it to 
elements does not make the statement of financial position -  receive cash or other economic resources by selling the
and the statement(s) of financial performance less complete. economic resource
- False  
   
  Question 12
Question 4 An entity has control if…
1 / 1 pts - it has the present ability to direct the use of the economic
The factors used to assess whether an entity has the practical resource and obtain the economic benefits that may flow from
ability to avoid transferring an economic resource may depend it
on the nature of the entity’s duty or responsibility.  
- True  
  Question 13
  It is a present obligation of the entity to transfer an economic
Question 5 resource as a result of past events.
Faithful representation of a recognized asset, liability, equity, - Liabilities
income or expenses involves not only recognition of that item,  
but also its measurement as well as presentation and disclosure  
of information about it. Question 14
 - True Which of the following is not a criterion of a liability?
  - Potential to produce economic benefits
 
Question 6
Expenses are decreases in assets, or increases in liabilities, that Question 15
result in increases in equity, other than those relating to Derecognition is the process of removal of all or part of a
distributions to holders of equity claims. recognized
- False - Asset
   
   
Question 7 Question 16
A present obligation exists as a result of past events only if the Obligations to transfer an economic resource include all of the
entity has already obtained economic benefits or taken an following except
action and as a consequence, the entity will or may have to - Obligations to pay in advance for a service to be availed
transfer an economic resource that it would not otherwise on the future.
have had to transfer.  
- False  
  Question 17
  If an entity has a legal ownership of a physical object, its asset
Question 8 is
If an item meeting the definition of an asset or liability is not - The set of the rights arising from the legal ownership of the
recognised, an entity need not  provide information about that physical object.
item in the notes.  
- False    
  Question 18
 
Instead of fulfilling an obligation to transfer an economic
resource to the party that has a right to receive that resource,
entities sometimes decide to
 
A. settle the obligation by negotiating a release from the
obligation
B. replace that obligation to transfer an economic resource
with another obligation  by entering into a new transaction.
C. Either a and b.
D. Neither a nor b.
 
 
Question 19
The recognition of a particular asset or liability and any
resulting income, expenses or changes in equity may not
always provide relevant information when
A. it is uncertain whether an asset or liability exists.
B. an asset or liability exists, but the probability of an inflow or
outflow of economic benefits is low.
C. Both A and B
D. Either A nor B
  
  
Question 20
Recognition of income occurs at the same time as 
A. The initial recognition of an asset, or an increase in the
carrying amount of an asset.
B. The initial recognition of a liability, or an increase in the
carrying amount of a liability.
C. The derecognition of an asset, or a decrease in the carrying
amount of an asset.
D. Both a and b