Currently,the FASB's Statements of Accounting Concepts (Nos.5 and 6)define an asset as having all of the following characteristics except:
A) costs not guided by management's judgment
B) probable future benefits
C) resulting from past transactions and events
D) something that is obtained/controlled by the entity

Question

Quizplus · Accepted Answer

The FASB's Statements of Accounting Concepts (Nos.5 and 6) define an asset as having 1) probable future economic benefits, 2) resulting from a past transaction or event, and 3) controlled by the entity. Guidance from management's judgment is not a defining characteristic of an asset.