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States that revenues are recorded when earned. Revenue is earned in most cases when the good is delivered or service is complete.

A. Matching Concept
B. Realization Concept
C. Consistency Concept
D. Materiality Concept

User Dejal
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1 Answer

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Final answer:

The principle that states revenues are recorded when earned, and typically when goods are delivered or services are completed, is known as the Realization Concept (B).

Step-by-step explanation:

The statement in the question refers to the principle that states revenues are recorded when they are earned, which typically happens when goods are delivered or services are completed. This principle corresponds to the Realization Concept (B), also known as the revenue recognition principle. The Realization Concept is central to accrual accounting, ensuring that revenue is recognized in the period in which it is earned, irrespective of when the cash is received. The principle that states revenues are recorded when earned, and typically when goods are delivered or services are completed, is known as the Realization Concept (B).

User Verdi
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