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What Three Conditions Must Be Met for GAAP to Consider

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Essay

What three conditions must be met for GAAP to consider the transfer of financial assets as a sale?


Definitions:

Predictive Validity

Refers to the extent to which a score on a scale or test predicts future performance or outcomes on a related measure.

Nominal Scale

A scale of measurement with two or more categories that have no numerical (less than, greater than) properties.

Discriminant Validity

The extent to which a measurement does not correlate with measurements from different constructs, ensuring distinctiveness among variables.

Predictive Validity

The extent to which a score on a scale or test predicts scores on some criterion measure.

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