A: Revenue is recognized when the significant risks and rewards of ownership are transferred. R: This is based on the Realization Concept. Choose the correct option.
A.Both A and R are true but R is NOT the correct explanation of A
B.Both A and R are true and R is the correct explanation of A
Explanation:
The Realization Concept dictates that revenue is recognized when the legal right to receive payment is established, typically upon transfer of risks and rewards. R correctly identifies the concept.
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