What does the term "realization" in accounting mean?

Question added by Zaid Mahadin
Date Posted: 2015/03/15

Upvote (0) Views (2) Followers (2) Answers (3) Report Question

by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Realization is also known in accounting as a "Revenue Recognition Principle".

So, means this is related to recognition of revenue.

Under this Concept, revenue should be recognized when the risks and rewards are transferred to the party, even not received the money.

by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

I AGREE WITH MR RAMZAN ANSWER

by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Clearing your sales bills and crediting the proceeds in your account. Or receipt of Collection proceeds. Or revenue earned....Your choice.

The realization account is temporarily use in place of ?
Top Answer: On dissolution of a firm, in order to record the sale of assets and discharge of liabilities, a nominal a ... See More

Answers (1)
Imputed cost is : 1- An economic term. 2- An accounting term .
Top Answer: an economics term. . it is not accounted in the accounting records. . See More

Answers (1)
Best short term courses in Accounting which will help career growth?
Top Answer: BEST SHORT TERM COURSES PIPFA CPA PEACH ... See More

Answers (2)
When do we use the term accrued in accounting?
Top Answer: Accrued is used when an amount is due to be paid or received. This term used to replace receivable or pay ... See More

Answers (12)

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.