GAAP Specifies That for a Seller to Record Revenue at Time

question 95

Multiple Choice

GAAP specifies that for a seller to record revenue at time of sale when right of return exists the following conditions must be met except:

• A)The seller's price to the buyer is substantially fixed or determinable at the date of sale.
• B)The buyer has paid the seller,or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product.
• C)The buyer's obligation to the seller changes in the event of theft or physical destruction or damage of the product.
• D)The amount of future returns can be reasonably estimateD.

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Definitions:

Variable

A characteristic or quantity that can vary or change within a study, research, or mathematical model.

Conditions

General states or situations in which something occurs or has an effect.

Independent Variable

In studies involving experimentation and statistics, it's the variable that is altered or controlled to see its impact on a dependent variable.

Dependent Variable

In an experimental setting, the variable that is tested and measured, often considered the outcome or effect that is influenced by another variable.