Multiple choice

Directions: Choose the correct option for the given question.

Credit sales are considered as revenue according to

  1. Dual aspect

  2. Realisation concept

  3. Entity concept

  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 right to receive it arises, which happens at the time of sale, regardless of when cash is actually received.

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