According to the AcSB guidelines, the process of reporting an item in the financial statements of an entity is
A) recognition.
B) realization.
C) allocation.
D) matching.

Question

Quizplus · Accepted Answer

Recognition refers to the process of including an item in an entity's financial statements based on the criteria and standards set forth by accounting principles. This includes determining when and how to recognize revenue, expenses, assets, and liabilities. Realization, allocation, and matching are related concepts, but they are not the primary process involved in reporting an item in financial statements.

According to the AcSB Guidelines, the Process of Reporting an Item