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WAEC Financial Accounting 2001 Question 37

Question 37

Accounting Concepts and Conventions

Profits are recognised when goods are sold. What concept is this?

  1. A.Realization
  2. B.Matching
  3. C.Periodicity
  4. D.Going concern.
Show the answer and explanation

Answer: A (Realization)

Explanation

The realisation concept recognises profit when the sale takes place.