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WAEC Financial Accounting 2020 Question 15

Question 15

Accounting Concepts and Conventions

Recognition of profit when goods are sold and the buyer takes ownership of them is in line with

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

Answer: A (realization concept.)

Explanation

Revenue is realised when ownership passes to the buyer.