Final answer:
Revenues are realized when goods or services are exchanged for cash, as cash is received and the income is measurable and earned at that point. In economic terms, revenue is the income from business activities, and it contributes to the national income.
Step-by-step explanation:
When goods or services are exchanged for cash or claims to cash (receivables), revenues are realized. Revenue recognition can occur when the earning process is complete and there is reasonable certainty as to the collectability of the asset. In this case, when an exchange is made for cash, the revenue is not merely recognized but is indeed realized, because cash or a claim to cash is received.
In accounting, 'revenue' is the income received by a firm from its business activities, such as the sale of goods or the provision of services. Revenue is realized at the point of sale when it is earned and measurable. The 'national income' includes all income earned, such as wages, profits, rent, and profit income, reflecting the total earnings from the production of goods and services within a country.