Explain why each of the following items would not meet either the definition or the recognition conditions
Question:
Explain why each of the following items would not meet either the definition or the recognition conditions of an asset of the business:
(a) a letter from the owner of the business, addressed to the bank manager, promising to guarantee the bank overdraft of the business
(b) a list of the customers of the business
(c) an order received from a customer
(d) the benefit of employing a development engineer with a high level of ‘know-how’ specifically relevant to the business
(e) money spent on an advertising campaign to boost sales
(f ) structural repairs to a building.
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Related Book For
Financial And Management Accounting An Introduction
ISBN: 9780273718413
5th Edition
Authors: Pauline Weetman
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