When deciding whether to recognize a financial statement element (or not), and how to measure it, the accountant should
A)always use estimates.
B)record "hard" numbers and ignore "soft" numbers.
C)determine an acceptable level of uncertainty.
D)recognize a financial statement element even if it cannot be measured.

Question

Quizplus · Accepted Answer

The accountant should determine an acceptable level of uncertainty when deciding whether to recognize a financial statement element and how to measure it. This means that the accountant should consider the level of confidence and reliability of the information available before making a decision. Simply using estimates, ignoring "soft" numbers, or recognizing a financial statement element even if it cannot be measured would not necessarily result in a reliable and accurate financial statement.

When Deciding Whether to Recognize a Financial Statement Element (Or