Define the term realization principle.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Define the term realization principle.
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Step 1
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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