If a firm receives an order for goods , it would not be included in the sale figure owing to which concept?
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In case, if a firm receives an order for goods, then it would not be included in the sale figure owing to the concept of revenue recognition.
Actually revenue recognition is an effective manner in which business transactions are taken into account.
Even if the people comprising a management of the particular organisation are not able to wok well, then too, such negative aspects cannot be revealed in accounts and this is just because of the money measurement concept.
This aspect is studied in accountancy syllabus by students. So the right answer in this case is revenue recognition.
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