alleryStart learning →The revenue recognition principle says revenue is recognized when it is what?
APaid by the buyer in cash
BInvoiced to the buyer
CRealized or realizable
DApproved by auditors
Answer & Solution
Correct answer: C. Realized or realizable
Revenue is recognized when realized or realizable, whenever the cash actually arrives.
Keep practising Ind AS 115 Revenue from Contracts with Customers
Browse all Ind AS 115 Revenue from Contracts with Customers questions for CA Final, or explore more Financialreporting topics.
Related questions
Repayment of debt principal belongs to which activity?In the indirect method, an increase in an asset account is treated how?The indirect method of cash flow preparation starts from what?Purchase or sale of an asset is classified under which activity?Under IAS 7, where may interest paid be reported?Which item does a cash flow statement exclude as a non-cash transaction?Why can a profitable company still run short of cash?A cash flow statement splits cash flows into which three?