The concept of realization permits a company to recognize income whenever there is an increase in the market value of the assets it holds.

Name: The concept of realization permits a company to recognize income whenever there is an increase in the market value of the assets it holds.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The concept of realization requires a company to recognize income only when it has been earned (such as through selling goods or providing services), not solely based on increases in market value of assets.

The Concept of Realization Permits a Company to Recognize Income