The realization concept states that

Accounts - Principles of Accounts

WAEC 2010

A. revenue is recognized as being earned when ownership of goods passes to the customer
B. revenue and profit should not be anticipated
C. similar way from one accounting period to another
D. transaction must be expressed in monetary term

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Correct Answer: Option D

Explanation

The realization principle is the concept that revenue can only be recognized once the underlying goods or services associated with the revenue have been delivered or rendered, respectively. Thus, revenue can only be recognized after it has been earned. Advance payment for goods .

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