What is the process of incorporating in the statement of financial position or the statement of comprehensive income an item that meets the definition and recognition criteria of an element known as?
A)creation
B)recognition
C)measurement
D)none of the above

Question

Quizplus · Accepted Answer

The process of incorporating an item that meets the definition and recognition criteria of an element in the statement of financial position or the statement of comprehensive income is known as recognition. Therefore, choice B - recognition - is the correct answer. Choice A - creation - is not a relevant term in accounting. Choice C - measurement - refers to the process of determining the monetary amount to be assigned to an element in the financial statements, which comes after recognition. Finally, choice D - none of the above - is too vague and does not provide a clear answer.

What Is the Process of Incorporating in the Statement of Financial