_____ refers to converting a noncash item to cash, for example, collecting an account receivable.
A)Actualization
B)Recognition
C)Realization
D)Materialization
E)Transformation

Question

Quizplus · Accepted Answer

Realization refers to the process of converting a noncash item (such as an account receivable) to cash. This involves collecting the cash and recognizing the transaction in the financial statements. Actualization, recognition, materialization, and transformation do not refer specifically to converting noncash items to cash.

_____ Refers to Converting a Noncash Item to Cash, for Example