Question:
SFAC No. 5 indicates that an item, to be recognized, should meet four criteria, subject to the cost-benefit constraint and the materiality threshold.
Which of the following is not one of the four criteria?
1. The item fits one of the definitions of the elements.
2. The item has a relevant attribute measurable with sufficient reliability.
3. The information related to the item is relevant.
4. The information related to the item is reliable.
5. The item has comparability, including consistency.
Accounting concepts:
The concepts that the companies use to reflect the fair presentation of financial statements are called accounting concepts. These are given by the different boards of accounting that recommend the companies to comply with. Some of the concepts are matching, consistency, accrual, etc.
Answer and Explanation:1
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Correct Answer: 5
Explanation:
Even though there has to be consistency to be followed in the accounting methods, for the item to be recognized,...
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