Accounting for IGCSE & O level - Advanced Principles (Section 2 - No. 35)
Which of the following is a characteristic of the realization principle?
Revenue is recognized when cash is collected.
Revenue is recognized when an order is placed.
Revenue is recognized when it is earned, usually upon delivery of goods or services.
Revenue is recognized as soon as possible.
Spiegazione
The realization principle governs when revenue should be recognized in the financial records.