The realization concept states that
Revenue is recognized as being earned when ownership of goods passes to the customer
Revenue and profit should not be anticipated
Similar way from one accounting period to another
Transaction must be expressed in monetary term
Correct answer is D
The realization principle is the concept that revenue can only be recognized once the underlying goods or services associated with the revenue have been delivered or rendered, respectively. Thus, revenue can only be recognized after it has been earned. Advance payment for goods.