What is the recognition principle and when is an item considered$$ recognized?

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Part $1$

A$.$

Recognition is the process of reporting an economic event in the financial statements. Recognized events are included in the notes in the statements as opposed to inclusion in a line item on the financial statements only.

B$.$

Recognition is the process of deciding which economic events an entity wishes to report in the financial statements. Recognized events are included in the notes of the financial statements.

C$.$

Recognition is the process of reporting an economic event in the financial statements. Recognized events are included in a line item on the financial statements as opposed to inclusion in the notes in the statements only.

D$.$

Recognition is the process of reporting an unreliable economic event in the financial statements. Recognized events such as these are included in the notes in the financial statements as opposed to inclusion in a line item on the financial statements only.