Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 39)
Which of the following is an example of the realization principle?
Recognizing revenue when cash is received
Recognizing income as goods and services are supplied
Matching costs to their corresponding revenues
Using a consistent depreciation method
Paliwanag
The realization principle highlights when the seller becomes legally obligated to pay to the seller.