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WAEC Financial Accounting 2012 Question 24

Question 24

Accounting Concepts and Conventions

The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is

  1. A.going concern.
  2. B.entity.
  3. C.consistency.
  4. D.realization.
Show the answer and explanation

Answer: D (realization.)

Explanation

The realisation concept says revenue is recognised when it is earned and can be measured objectively, usually when goods pass to the buyer.