Which of the following criteria must be met before an event should be recorded for accounting purposes?
A) The event must be an arm's-length transaction.
B) The event must be repeatable in a future period.
C) The event must be measurable in financial terms.
D) The event must be disclosed in the reported footnotes.

Question

Quizplus · Accepted Answer

The primary criterion for an event to be recorded for accounting purposes is that it must be measurable in financial terms. This means that the event must have a monetary value that can be quantified and included in the financial statements. Arm's-length transactions and repeatable events are not necessary criteria for recording an event in accounting, and disclosure in footnotes is not sufficient for recording purposes.

Which of the Following Criteria Must Be Met Before an Event