Which of the following elements does not require recognition criteria in order to decide whether it should be recognised in the financial statements?
A) Assets
B) Revenues
C) Equity
D) Expenses

Question

Quizplus · Accepted Answer

Equity is a component of the financial statements and does not require recognition criteria as it represents the residual interest in the assets of the entity after deducting liabilities. However, assets, revenues, and expenses require recognition criteria in order to decide whether they should be recognized in the financial statements.

Which of the Following Elements Does Not Require Recognition Criteria