Accounting · Accounting Principles and Concepts
Under the realization concept, revenue from the sale of goods is ordinarily recognized and reported as part of earnings in the period in which:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The order is placed by the customer
- 2The goods are manufactured or purchased for stock
- 3The actual cash consideration is collected
- 4The sale is made and ownership/risk is transferred✓
Correct answer
The sale is made and ownership/risk is transferred
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