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Matthew O'Leary
on Nov 02, 2024

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The two recognition criteria for the elements of financial statements are:

A) Faithful representation and Existence of economic benefits.
B) Existence of economic benefits and Control.
C) relevant and faithful representation.
D) Probability of occurrence and Control.

Recognition Criteria

The standards or requirements that must be met for a particular item to be reported or included on a company's financial statements, ensuring the item's relevance and reliability.

Faithful Representation

When an economic phenomenon is depicted completely, neutrally, and free from material error.

Economic Benefits

are the advantages or gains that entities expect to receive as a result of certain actions or investments, often measured in terms of cash flows or cost savings.

  • Understand the recognition criteria for elements of financial statements.
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MD
Marcela De La TorreNov 03, 2024
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