Question

The Realisation Concept Is

(A) Important for determining the incomes pertaining to an accounting period

(B) Avoid the possibility of inflating incomes and profits

(C) Also known as revenue recognition concept

(D) All of the above.

.

Answer 1

Correct Answer: Option (D) All of the above.

The realisation concept is one of the fundamental principles of accounting. It is also known as the revenue recognition concept. The two advantages of this concepts are:

1. Important for determining the incomes pertaining to an accounting period

2. Avoid the possibility of inflating incomes and profits.

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