The FASB Concluded That If a Company Sells Its Product

question 116

Multiple Choice

The FASB concluded that if a company sells its product but gives the buyer the right to return the product, revenue from the sales transaction shall be recognized at the time of sale only if all of six conditions have been met. Which of the following is not one of these six conditions?

• A) The amount of future returns can be reasonably estimated.
• B) The seller's price is substantially fixed or determinable at time of sale.
• C) The buyer's obligation to the seller would not be changed in the event of theft or damage of the product.
• D) The buyer is obligated to pay the seller upon resale of the product.

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Definitions:

William James

Often referred to as the father of American psychology, he was a philosopher and psychologist who was the first educator to offer a psychology course in the United States, making significant contributions to psychology, especially in the areas of education, religion, and mysticism.

Conscious Experience

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Wilhelm Wundt

Known as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Edward Titchener

A psychologist known for founding structuralism and his method of introspection to identify the basic elements of consciousness.