Which Fundamental Accounting Concept Stipulates That Revenues and Profits Are

question 22

Multiple Choice

Which fundamental accounting concept stipulates that revenues and profits are not anticipated,but recognized only when realized as cash?

• A) Consistency
• B) Prudence
• C) Comparability
• D) Accruals

---

Definitions:

Lead Times

The amount of time that elapses between the initiation and the completion of a production process or the delivery of a service.

Order Completion

The process of fulfilling customer orders from start to finish including manufacturing, packaging, and shipping.

Product A

A placeholder name for a specific product, often used in examples or cases where the actual product name is not given.

Cost of Materials

The total expense incurred from acquiring raw materials and components needed for the production of goods or services.