Final answer:
The FASB conceptual framework uses the term 'recognition' for the process of reporting an item in the financial statements of an entity, making option d the correct choice. so the correct answer is option D.
Step-by-step explanation:
According to the Financial Accounting Standards Board's (FASB) conceptual framework, the process of reporting an item in the financial statements of an entity is known as recognition. Recognition is a process that involves the formal recording of an item into the financial statements and consists of incorporating an item that meets the definition of an element and satisfies the following criteria:
it is probable that any future economic benefit associated with the item will flow to or from the entity, and the item has a cost or value that can be measured with reliability.
Therefore, the correct option is d. recognition. According to the FASB's conceptual framework, the process of reporting an item in the financial statements of an entity is called recognition.