The accounting principle that states that, In the preparation of account statements, revenues are recognized as soon as goods is passed on to the customer i...

The accounting principle that states that, In the preparation of account statements, revenues are recognized as soon as goods is passed on to the customer is the

Answer Details

The accounting principle that states that revenues should be recognized as soon as goods or services are passed on to the customer is the realization concept. This means that revenue should be recognized in the accounting records when a transaction has been completed, regardless of whether or not the payment has been received. This concept is also known as the revenue recognition principle and is a fundamental principle of accounting. It ensures that the financial statements accurately reflect the revenues earned by the business during a particular accounting period.