Define the term realization principle.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Define the term realization principle.

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Accounting:

Accounting refers to the information system, where the economic activities of a business entity are measured, and converted into reports, that are communicated to its users, for taking informed decisions.

Accounting principles:

These are the assumption, concepts, and guidelines necessary to prepare and report the accounting formation in a relevant format which is better understood by the users.

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