Multiple choice

Concept of Realisation implies

  1. when cash is received from debtors

  2. when the title in goods is transferred to customer

  3. when order is received

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The realization concept states that revenue is recognized when the legal title to goods is transferred to the buyer, regardless of when the cash is actually received.