2016年美国CPA模拟试题：Financial 9

　　According to the FASB conceptual framework， the process of reporting an item in the financial statements of an entity is：

　　a. Allocation.

　　b. Matching.

　　c. Recognition.

　　d. Realization.

　　答案：C

　　Explanation

　　Choice “c” is correct. Recognition is the process of recording an item in the financial statements of an entity. SFAC 5 para. 6

　　Choice “a” is incorrect. Allocation is the accounting process of assigning or distributing an amount according to a plan or a formula. SFAC 6 para. 142

　　Choice “b” is incorrect. Matching of costs and revenues is simultaneous or combined recognition of the revenues and expenses that result directly and jointly from the same transactions or other events. SFAC 6 para. 146

　　Choice “d” is incorrect. Realization is the process of converting noncash resources and rights into money. SFAC 6 para. 143