Question :
61. The FASB’s conceptual framework defines a(n) _____ as a probable : 1230488
61. The FASB’s conceptual framework defines a(n) _____ as a probable future economic benefit obtained or controlled by a particular entity as a result of a past transaction or event.
A. asset
B. liability
C. equity
D. revenue
E. expense
62. The FASB’s conceptual framework defines a(n) _____ as a probable future sacrifice of economic resources arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
A. asset
B. liability
C. equity
D. revenue
E. expense
63. The FASB’s conceptual framework defines a(n) _____ as inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations.
A. assets
B. liabilities
C. equities
D. revenues
E. expenses
64. The IASB’s conceptual framework defines a(n) _____ as a resource controlled by an entity as a result of past events and from which a firm expects future economic benefits.
A. asset
B. liability
C. equity
D. revenue
E. expense
65. The IASB’s conceptual framework defines _____ as increases in economic benefits during an accounting period in the form of inflows or enhancements of assets or decreases in liabilities that result in increases in equity, other than those relating to contributions from equity participants.
A. asset
B. liability
C. equity
D. revenue
E. expense
66. Which of the following is/are a criteria for asset recognition under the FASB’s and IASB’s conceptual framework.
A. The firm owns or controls the right to use the asset.
B. The right to use the item arises as a result of a past transaction or exchange.
C. The future benefit has a relevant measurement attribute that a firm can quantify with sufficient reliability.
D. all of the above
E. none of the above
67. The definition of an asset excludes
A. expected benefits related to rights under executory contracts
B. mere exchanges of promises
C. contingent assets
D. all of the above
E. none of the above
68. Firms do not recognize certain obligations that are uncertain as to amount or timing or both as liabilities, unless those items meet a probability threshold and have a reliable measurement attribute. U.S. GAAP refers to these as _____, such as the possible obligation under an unsettled lawsuit.
A. contingent liabilities
B. unrealized contingencies
C. realized contingencies
D. unrecognized contingencies
E. recognized contingencies
69. Firms do not recognize certain obligations that are uncertain as to amount or timing or both as liabilities, unless those items meet a probability threshold and have a reliable measurement attribute. IFRS refers to these as _____, such as the possible obligation under an unsettled lawsuit.
A. contingent liabilities
B. unrealized contingencies
C. realized contingencies
D. unrecognized contingencies
E. recognized contingencies
70. The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. U.S. GAAP does not specify a minimum probability level, although the rule-of-thumb in practice is approximately _____ percent.
A. 50
B. 60
C. 70
D. 80
E. 90
