JAMB - Accounts Principles Of Accounts (2025 - No. 15)
The accounting principle that states that, in the preparation of an accounting statement, revenue is recognized as soon as goods are passed on to the customer is the
matching concept
materiality concept
consistency concept
realization concept
Explanation
The realization concept states that revenue is recognized when it is earned and realizable, not when cash is received. This means revenue is recorded when goods are delivered or services provided. Thus, recognizing revenue as soon as goods are passed to the customer follows the realization concept.
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