Which of the following statements is INCORRECT in the context of accounting concepts?
1
In case of precious metals like gold, the revenue is recognised when the gold is mined and not necessarily when it is sold.
2
In case of sale on instalment basis under hire purchase transactions, cash received in the form of instalment is the amount of revenue recognised.
3
The realization concept is related to both revenues and expenses.
4
Accounting systems based on the accrual concept is also known as the Mercantile System of Accounting.