Which of the following is closest to the accounting definition of an asset?
A)Things that have probable future value and the company controls.
B)Things that have certain future value and the company controls.
C)Things that have probable future value and the company owns.
D)Things that have certain future value and the company owns.

Question

Quizplus · Accepted Answer

The accounting definition of an asset is something that has probable future economic value and is controlled by the company. This means that the company has the ability to use, sell, or exchange the asset for cash or other assets. The term "probable future economic value" suggests that the asset has the potential to generate revenue or reduce costs for the company in the future, but it is not certain. Option B is incorrect because it suggests certainty, which is not always the case. Option C is incorrect because owning something does not necessarily mean that the company controls it. Option D is incorrect because certainty is not a requirement for an asset, and ownership alone does not define an asset.

Which of the Following Is Closest to the Accounting Definition