Recognition in the accounting terminology means
A) recognizing the difference between assets and liabilities.
B) recognizing the difference between income and expenses.
C) recognizing that initially transactions are recorded at fair value.
D) the process of recording a transaction in the accounting records.

Question

Quizplus · Accepted Answer

Recognition in accounting refers to the process of recording a transaction in the accounting records when it meets the criteria for recognition. This involves formally acknowledging and documenting the transaction in the financial statements.

Recognition in the Accounting Terminology Means