In Relation to the Concept of Recognition of an Item

Multiple Choice

In relation to the concept of recognition of an item in the financial statements:

A) Items of equity must satisfy both the probability and measurement criteria before they can be recognised.
B) Assets can only be recognised where there is a high probability of future economic benefits flowing to the entity.
C) Expenses are recognised when a decrease in a future economic benefit related to an increase in an asset or a decrease in a liability has arisen that can be measured reliably.
D) For items to qualify for recognition in the financial statements as liabilities or income they must first satisfy the definition of an element, and then meet both the probability and measurement requirements in relation to recognition.