Revenue Recognition in Accounting

Steps:

• Recall the core accounting concepts: consistency ensures uniform methods, going concern assumes business continuity, money measurement records only quantifiable transactions, and realisation confirms revenue when earned.
• Identify the question's focus: recognising revenue only after it is earned, not when cash is received.
• Match to definitions: realisation specifically requires evidence of earning through performance or delivery.
• Eliminate mismatches: other options address different principles like uniformity or continuity.

Why D is correct:

• The realisation concept defines revenue recognition as occurring when goods/services are delivered and earnings are reasonably assured, per accrual accounting standards like GAAP.

Why the others are wrong:

• A. Consistency requires applying the same accounting methods over periods for comparability.
• B. Going concern assumes the business will continue operating indefinitely without liquidation.
• C. Money measurement records only transactions expressible in monetary terms.

Final answer: D