Discuss Worldatwork T7 Exam Topic 1 Question 129

Which of the following best defines the term ''asset''?

AThe residual interest in the assets of the entity after deducting all its liabilities.

BA resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity

CA present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

DIncreases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants

Suggested Answer: B

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25 comments · newest first

Ronny

A is tricky, but I feel it’s not the right definition.

Micheline 5 days ago

Agreed, B makes the most sense. It's clear and precise.

Jordan 10 days ago

I think B is the best answer. It covers resources and future benefits.

Malcolm 15 days ago

I like B too. It captures the essence of what an asset is.

Diane 21 days ago

B feels right. It’s straightforward and relevant.

Candra 26 days ago

D is too complex. I prefer the simplicity of B.

Benton 1 month ago

C is confusing. It talks about obligations, not assets.

Annice 1 month ago

B is definitely the right choice. It covers control and past events.

Kaycee 1 month ago

I’m torn between A and B. A is about liabilities, though.

Ernest 2 months ago

Agreed, B makes the most sense. It's about future benefits.

Margurite 2 months ago

I think option B is the best. It clearly defines an asset.

Reita 2 months ago

Yeah, B covers the future benefits part well!

Nickolas 2 months ago

A is just the leftover after liabilities, not really an asset.

Carma 2 months ago

Wait, are we sure about B? Sounds a bit complicated.

Kathrine 2 months ago

Totally agree, B makes the most sense!

Viola 3 months ago

B is the correct definition of an asset.

Rosalind 3 months ago

D describes revenue, not an asset.

Olene 3 months ago

Wait, are we sure B is right? Sounds a bit complicated.

Azalee 3 months ago

A is actually the definition of equity, not an asset.

Haley 3 months ago

Totally agree, B makes the most sense!

Mari 3 months ago

B is the correct definition of an asset.

Yaeko 4 months ago

I can’t recall the exact definitions, but I feel like D is more about income rather than defining what an asset is.

Ashton 4 months ago

I'm a bit confused because option A also seems relevant, but I feel like it describes equity more than an asset.

Truman 4 months ago

I remember practicing a question similar to this, and I think B is definitely the right choice since it mentions future economic benefits.

Tiara 4 months ago

I think option B sounds familiar, but I'm not entirely sure if it captures the full definition of an asset.

Worldatwork T7 Exam - Topic 1 Question 129 Discussion