Which of the following must exist before income can be recognised?
A) The increase in future economic benefits related to an increase in an asset or a decrease in a liability must have arisen.
B) The increase in future economic benefits must be able to be measured reliably.
C) All options must exist.
D) Income recognition must occur at the same time as the recognition of increases in assets or reductions in liabilities.

Question

Quizplus · Accepted Answer

All the options listed are essential conditions for the recognition of income according to the accrual basis of accounting. Income is recognized when an increase in future economic benefits related to an increase in assets or a decrease in liabilities can be reliably measured, which aligns with the principles outlined in financial reporting standards.

Which of the Following Must Exist Before Income Can Be