Revenue Realization Accounting Concept

Accounting Concept : Revenue Realization Concept
Revenue Realization Concept is considered as the income earned on the date, when it is realized. According to Revenue Realization Concept, Unearned or unrealized revenue is not taken into account.

Few Points to Remember
  • The term Realization means creation of legal right to receive money.
    • Example: Selling Good is realization and Receiving order is not.
  • Revenue Transaction will be recorded in the books of accounts only when it is realized.

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