In accounting, recognition refers to:
I. the inclusion of dollar amounts into an entity's accounting system.
II. the process of incorporating the important elements into the financial statements.
III. that information is acknowledged in the reports.
IV. that the meaning of information can be comprehended by users.
A) I and II
B) II and III
C) I and IV
D) III and IV

Question

Quizplus · Accepted Answer

Recognition in accounting refers to the inclusion of dollar amounts into an entity's accounting system (I) and the process of incorporating the important elements into the financial statements (II). The acknowledgement of information in the reports (III) and the comprehension of information by users (IV) are not directly related to recognition in accounting.

In Accounting, Recognition Refers To