An accountant describes the effects of an economic event on an entity by recording the transaction and reporting the amount on the financial statements.What is this called?

Question

Quizplus · Accepted Answer

Recognition refers to the process of identifying and recording an economic event in an organization's financial records. This includes determining the amount involved and the accounts affected. Recognition is an important step in the accounting process because it enables an entity to accurately report its financial position and performance.

An Accountant Describes the Effects of an Economic Event on an Entity