The recognition criteria that must be satisfied under the Conceptual Framework for income to be included in the profit report is:
A)Probable that the inflow of resources has occurred.
B)Inflow of resources able to be reliably measured.
C)Income must be matched with expenses.
D)Both A and B.

Question

Quizplus · Accepted Answer

The recognition criteria that must be satisfied under the Conceptual Framework for income to be included in the profit report are: (A) probable that the inflow of resources has occurred, and (B) the inflow of resources able to be reliably measured. Therefore, option D, which includes both criteria, is the correct answer. The criterion of matching expenses with revenue is a concept of accrual accounting, but it is not relevant to the recognition criteria.

The Recognition Criteria That Must Be Satisfied Under the Conceptual