In the Framework, recognition means including the financial effect of an item:
A)in one of the financial statements
B)in the notes only
C)in one of the financial statements or in the notes
D)only in either the income statement or the balance sheet

Question

Quizplus · Accepted Answer

Recognition in the context of the framework refers to the process of including an item within the main body of the financial statements (either the income statement or the balance sheet), rather than merely mentioning it in the notes.

In the Framework, Recognition Means Including the Financial Effect of an Item