The issue of deciding when to record a transaction is solved by
A)properly classifying the transaction.
B)deciding on a point of recognition.
C)assigning historical cost to the transaction.
D)analyzing the intent of management.

Question

Quizplus · Accepted Answer

Deciding on a point of recognition addresses the timing of recording a transaction. It provides guidance on when to recognize and record revenue, expenses, gains, and losses in the financial statements. Proper classification, assigning historical cost, and analyzing management intent are important considerations, but they do not directly address the timing issue.

The Issue of Deciding When to Record a Transaction Is