According to the FASB's conceptual framework,the process of reporting an item in the financial statements of an entity is
A) realization.
B) recognition.
C) matching.
D) allocation.

Question

Quizplus · Accepted Answer

According to the FASB's conceptual framework, recognition is the process of reporting an item in the financial statements of an entity. Recognition refers to the process of formally recording and reporting an item in the financial statements of the entity, which means including the item in the balance sheet or income statement.

According to the FASB's Conceptual Framework,the Process of Reporting an Item