Question

Discuss the concept-based on the premise ‘do not anticipate profits but provide for all losses’.
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Answer 1

Explanation:

. Realisation Concept: According to this concept, revenue should be accounted only when it is actually realized or it has become certain that the revenue will be realized this signifies that revenue should be recognized only when the services are rendered or the sale is affected. However, in order to recognize revenue, actual receipt of is not necessary, but the organization should be legally entitled to receive the amount for the services rendered or the sale affected.

Answer 2

Explanation:

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