Practice Realization Concept (Revenue Recognition) - 15.3.8 | 15. Accounting Principles and Concepts | Management 1 (Organizational Behaviour/Finance & Accounting)
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

15.3.8 - Realization Concept (Revenue Recognition)

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define the realization concept.

💡 Hint: Think about when a company completes its service or sale.

Question 2

Easy

True or False: Revenue is recorded when cash is received.

💡 Hint: Recall the key principle of recognizing revenue when it is earned.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

When is revenue recognized according to the realization concept?

  • When cash is received
  • When services are performed
  • At year-end

💡 Hint: Think about when you actually earn your income.

Question 2

True or False: The realization concept allows for recognizing revenue on a cash basis.

  • True
  • False

💡 Hint: Remember the key principle of earning revenue.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A software company signs a contract in December to provide services for the upcoming year. The first payment is received in January. Discuss when revenue should be recognized and why.

💡 Hint: Consider the timing of service delivery vs. payment.

Question 2

Company X sells $10,000 worth of merchandise in December on credit. They don’t collect the payment until February. Analyze how this affects their December income statement and cash flow statement.

💡 Hint: Think about how accounts receivable works and its implications on financial reporting.

Challenge and get performance evaluation