Question on: WAEC Accounting - 2012
The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is
A
going concern
B
entity
C
consistency
D
realization
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Correct Option: D
TheĀ realization principleĀ is theĀ conceptĀ 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.
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