Revenue is generally recognized when earning process is virtually complete and significant risks and rewards have been exchanged. This is an application of _________ principle.

Consistency

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Matching

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Realization

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Conservatism

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Realization
This concept defines that revenue is recognized only when there is a transfer or exchange of goods or assets. Sale is complete only when the title of goods is passed on to the buyer.

Suggest Corrections