Question

The realisation concept determines when goods sent on credit to customers are to be included in
the sales figure for the purpose of computing the profit or loss for the accounting period. Which of
the following tends to be used in practice to determine when to include a transaction in the sales
figure for the period. When the goods have been:
a. dispatched b. invoiced c. delivered d. paid for
Give reasons for your answer.

Answer 1

Answer:

follow me i will follow too yupp

Answer 2

The correct answer is B

Explanation:

• Realisation concept or the principle is defined as the revenue which could be recognized or acknowledged once the underlying services and the goods are linked with the revenue that have been rendered or delivered.
• In short, is stated that the revenue could be recognized or acknowledged when it has been earned.
• So, in this case, in accordance with the concept of realisation, the revenue will be recognized when the obligation to receive the amount arises. And when the goods are invoiced, then it will be treated as the ownership transfer of the goods from the seller to the buyer and the revenue will be recognized.

You can learn more from here about realisation concept:

https://brainly.in/question/14622677

You can learn more from here about realisation concept:

https://brainly.in/question/6834039