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Revenue Realisation is listed in the lesson as an accounting concept. Under this concept, when is revenue from the sale of goods generally recognised in the books?
Answer & Solution
Correct answer: A.
1. Revenue Realisation is one of the listed accounting concepts.
2. It recognises revenue at the point the sale is complete and the right to consideration is established.
3. Mere dispatch, cash collection and post-use confirmation are not the recognition trigger under Realisation.
4. The concept underpins accrual recognition of sales income.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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