A-LevelAccountingThe accounting cycle9706/12 · Feb/Mar 2025 · Q11 Mark

Which statement explains the realisation concept?

Abusiness recognises sales revenue when it delivers the goods to a credit customer.

Bbusiness recognises sales revenue when it receives an order from a credit customer.

Cbusiness recognises sales revenue when it receives cash from a credit customer.

Dbusiness recognises sales revenue when the customer sells the goods onwards.

✓ Correct answer

A: business recognises sales revenue when it delivers the goods to a credit customer.

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2025 Paper 1 Variant 2, question 1.

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