Concept:The realization concept determines when revenue should be recorded in the financial statements.
Explanation:Revenue is recognized as soon as goods are delivered or passed to the customer.
At this point, the seller has completed the sale and the buyer has received the goods.
Thus, income is treated as realized when ownership and risk transfer to the customer.
This rule is exactly stated in the question.
The materiality concept relates to the importance of an item in decision-making.
The matching concept matches expenses with the revenues they help earn in the same period.
The consistency concept requires using the same accounting methods from one period to the next.
Only the realization concept focuses on the timing of revenue recognition.
Answer:D. realization concept