Search SchoolNGR

Monday, 06 April 2026
Register . Login

The realization concept states that

The realization concept states that
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • 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
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 .

Share question on: