Recognition in accounting means:
A) that information is useful for decision making.
B) that information is acknowledged in the reports.
C) the incorporation of assets, liabilities, income and expenses into the financial statements.
D) that the meaning of information can be comprehended by users.

Question

Quizplus · Accepted Answer

Recognition in accounting refers to the incorporation of assets, liabilities, income and expenses into the financial statements. This process involves identifying and measuring the financial transaction or event and then reporting it in the financial statements of the organization. Recognition of financial information is a crucial step in accounting as it helps in presenting a true and fair view of an organization's financial health. The other options given are related to the usefulness and comprehension of financial information, but not specifically to recognition.

Recognition in Accounting Means