Not anticipating profits until they have been earned through a sale is a description of which accounting convention?
A) Accruals
B) Periodicity
C) Prudence
D) Realisation

Question

Quizplus · Accepted Answer

The realisation convention in accounting states that profits should only be recognized when they are earned, typically through a sale, rather than when cash is received.

Not Anticipating Profits Until They Have Been Earned Through a Sale