The Two Recognition Criteria for the Elements of Financial Statements

question 2

Multiple Choice

The two recognition criteria for the elements of financial statements are:

• A) Faithful representation and Existence of economic benefits.
• B) Existence of economic benefits and Control.
• C) relevant and faithful representation.
• D) Probability of occurrence and Control.

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Definitions:

Aggressive Pricing

A strategy where products or services are offered at low or reduced prices to attract customers, gain market share, or drive competitors out of the market.

Multilateral Aid Agencies

Collectively owned aid agencies.

Government Aid Agencies

Public entities that provide resources and assistance to countries or regions in need.

Nonprofit Organizations

Organizations that operate for the public or social benefit, without the primary goal of making profits for shareholders or owners.