The Conceptual Framework's recognition criteria provides that 'an asset is recognised in the balance sheet when it is ________ that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured __________'.
A)possible; reliably
B)probable; accurately
C)probable; reliably
D)certain; accurately

Question

Quizplus · Accepted Answer

The key words "probable" and "reliably" are in line with the recognition criteria in the Conceptual Framework. "Possible" and "accurately" do not completely match the recognition criteria. "Certain" is too strong a requirement and not necessary for recognition.

The Conceptual Framework's Recognition Criteria Provides That 'An Asset Is