What is the difference between realized and realizable? Give an example of where the concept of...

1. What is the difference between realized and realizable? Give an example of where the concept of realizable is used to recognize revenue.

2. What is the justification for the following deviations from recognizing revenue at the time of sale?

(a) Installment sales method of recognizing revenue.

(b) Recognition of revenue at completion of production for certain agricultural products.

(c) The percentage-of-completion basis in long-term construction contracts.

3. Mogilny Company paid $135,000 for a machine. The Accumulated Depreciation account has a balance of $46,500 at the present time. The company could sell the machine today for $150,000. The company president believes that the company has a “right to this gain.” What does the president mean by this statement? Do you agree?