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WAEC Accounting 2020 Objective — Question 15

Question 15 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

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Recognition of profit when goods are sold and the buyer takes ownership of them is in line with A. realization concept. B. matching concept. C. business entity concept. D. going concern concept.

  • A. realization conceptCorrect
  • B. matching concept
  • C. business entity concept
  • D. going concern concept

Explanation

The realization concept states that revenue (and profit) is recognized when goods are sold and ownership passes to the buyer, not necessarily when cash is received.

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