Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 38)
What is the purpose of the realization principle?
To record revenue when cash is received.
To record revenue when it is earned and when goods or services have been provided.
To record expenses when they are paid.
To record losses.
คำอธิบาย
The realization principle requires revenue to be recognized when it's earned.