The Recognition Criteria That Must Be Satisfied Under the Conceptual

question 53

Multiple Choice

The recognition criteria that must be satisfied under the Conceptual Framework for income to be included in the profit report is:

• A)Probable that the inflow of resources has occurred.
• B)Inflow of resources able to be reliably measured.
• C)Income must be matched with expenses.
• D)Both A and B.

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Definitions:

Normative Statement

Statements that express an opinion or a value judgment, often involving what ought to be rather than what is.

Normative Statement

A statement that expresses a value judgment about whether a situation is desirable or undesirable; it looks at the world as it "should" be.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring financial system stability.

Prescriptive Statement

Normative assertions that suggest how things should be, often based on opinions or value judgments.