Question

Q2. Revenue is generally recognized at the point of sale denotes the concept of
(a) Revenue Realization (b) Matching
(c) Conservatism
03 Define Accounting

Answer 1

Revenue is generally recognized at the point of sale denotes the concept of Revenue realization

Explanation

In addition to the matching concept, the revenue recognition principle is a foundational element of accrual accounting. The accounting period in which revenues and expenses are recorded is decided by them both.

According to the principle, regardless of when cash is received, revenues are recognised whenever they are earned and are realised or realisable (often when goods are transferred or services are delivered).

Finally, rather than when the money is received, revenue must be recorded at the time of sale.

HenceRevenue is generally recognized at the point of sale denotes the concept of Revenue realization

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