Concept:Profit is recorded when a sale is complete and the buyer legally owns the goods.
Explanation:Under the realization concept, revenue is recognized only when goods are sold and ownership has been transferred to the buyer.
This means profit is considered earned at the point of sale, not when an order is placed or payment is received later.
The matching concept deals with matching expenses with revenues of the same period.
The business entity concept treats the owner and the business as separate.
The going concern concept assumes the business will continue operating in the future.
Therefore, the idea of recognizing profit on sale with transfer of ownership is based on the realization concept.
Answer:A. realization concept