I am Working On a Medical Project and the app can able to record the conversation between doctor and patient and send it for Transcription.
Assignment :
No. It is not possible to use the emulator for recording sound. You will have to code the logic of your program and then to deploy the actual apk to your phone, in order to test its functionality.
check this link as an official reference: http://developer.android.com/intl/es/guide/topics/media/audio-capture.html