Which of the following statements best describes the FASB's general criteria for when an item should be recognized and recorded in the financial statements?
A) These criteria do not include any mention of the measurability of the item.
B) These criteria indicate that the item must be measurable in some way, even if the measurement has very low reliability.
C) These criteria indicate that the item must be measurable with sufficient reliability.
D) These criteria indicate that the item's measurement must be highly certain.

Question

Quizplus · Accepted Answer

The FASB's criteria for recognition and recording of an item in the financial statements require that the item must be measurable with sufficient reliability. This means that the measurement should be reliable and not subject to significant uncertainty or risk of material adjustment. The criteria also consider the relevance and faithful representation of the information to be reported. Measurability alone is not sufficient for recognition and recording.

Which of the Following Statements Best Describes the FASB's General