Which of the Followings Are the Recognition Criteria of Elements

question 20

Multiple Choice

Which of the followings are the recognition criteria of elements of financial statements?
$\begin{array}{ll}I.\text { Existence of economic benefits}&III.\text { Probable occurrence }\\II.\text {Reliable measurement }&IV.\text { Control by the entits}\\\end{array}$

• A) I and II
• B) II and III
• C) II and IV
• D) I and III

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Definitions:

Absorption Costing

A costing technique that incorporates all costs associated with production, including both fixed and variable expenses, into the product's price.

Income Increase

A rise in the amount of money earned from various sources, including work, investments, or business operations.

Variable Costing

A costing method that includes only variable costs—costs that change with production levels—in the calculation of product costs.

Net Income

The total profit of a company after subtracting all expenses from total revenues, reflecting the company's financial performance over a given period.