Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Which statement sets out the realisation concept?

  • AA business recognises sales revenue when it delivers the goods to a credit customer.
  • BA business recognises sales revenue when it receives an order from a credit customer.
  • CA business recognises sales revenue when it receives cash from a credit customer.
  • DA business recognises sales revenue when the customer sells the goods onwards.

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