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Income recognition must rest on the record of:
ARecovery
BRevenue
CReserves
DRollover
Answer & Solution
Correct answer: A. Recovery
1. The policy has to be objective, not subjective.
2. Booking income on a promise would not be objective.
3. So it rests on the record of recovery.
_Source: RBI Master Circular, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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