Identify the Recognition Criteria That Must Be Satisfied Under the Conceptual

question 38

Multiple Choice

Identify the recognition criteria that must be satisfied under the Conceptual Framework for an expense to be included in the income report.

• A) probability that the outflow of resources has occurred
• B) outflow of resources able to be reliably measured
• C) outflow of resources virtually certain
• D) both A and B

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Definitions:

Subsurface Rights

Legal rights to the minerals, oil, gas, and other resources located below the surface of a piece of property.

Surface Subsides

The phenomenon of ground levels sinking or settling, which can result from natural processes or human activities such as mining or excessive groundwater extraction.

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Harvest

The process or period of gathering in crops.