A Contract That Gives the Owner the Option or Choice

question 71

Multiple Choice

A contract that gives the owner the option or choice of selling a particular good at a specified price on or before a specified date is called a (n) :

• A)call option
• B)put option
• C)option on a future
• D)derivative option

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Definitions:

Recognizes Revenues

Recognizing revenues involves the accounting process of recording income when it is earned, which may not necessarily coincide with when payment is received.

Not-for-Profit Organizations

Entities that operate for purposes other than to make a profit, typically focusing on charitable, educational, or social objectives.

Public Accountants

are certified professionals who provide accounting services, including auditing, tax advice, and financial planning, to the public.

GAAP Standard

Generally Accepted Accounting Principles, the set of accounting standards used in the United States to ensure accuracy and consistency in financial reporting.