Which of the Following Best Explains What Recognition Means in Financial

question 94

Multiple Choice

Which of the following best explains what recognition means in financial reporting?

• A)Recognition is the process of reporting an item that is due within 12 months in the current section of the balance sheet.
• B)Recognition is the process of reporting an item in the notes to the financial statements.
• C)Recognition is the process of presenting an item in the financial statements.
• D)Recognition refers to the choice between using fair value and historical cost in the financial statements.