Which Is Not One of the Four Recognition Criteria Identified

question 28

Multiple Choice

Which is not one of the four recognition criteria identified by the FASB?

• A)reliable
• B)understandable
• C)meets the definition of an element
• D)measurable

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Definitions:

Prudent Business Judgment

Decision-making by business leaders that is cautious, reasonable, and in the best interest of the organization, based on available information.

Business Judgment

The decision-making process undertaken by company directors or officers that is characterized by a reasonable level of discernment and is in the interest of the company.

Breach

A violation or infringement of a legal obligation, contract, or law.

Employment Contract

A legal agreement between an employer and an employee that outlines the terms and conditions of employment.