Discuss the realization concept, giving examples of how it has influenced the accounting standards The realization concept means that accounts recognize transactions. They do not just recognize the transactions when cash exchanges hands, but also when the transaction occurs at the point of sale and this is when the transaction becomes legal, as it does not just become legal when the money is fransferred (“What Is Realization Concept In Accounting”, n.d.). For example, assume I bought a house, which…
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