In Which of the Following Transactions Would It Not Be

question 12

Multiple Choice

In which of the following transactions would it not be appropriate to recognize an asset in the financial statements?

• A)SGG receives a firm commitment from another company to purchase goods from SGG.
• B)SGG pays $10,000 to a lawyer for services to be provided next year.
• C)SGG provides services to another company, but will not be paid until after year end.
• D)A customer of SGG makes a deposit of $1,500 for goods to be custom-made.

---

Definitions:

Erythropoiesis

The process through which new red blood cells are produced in the bone marrow.

Jaundice

A medical condition characterized by yellowing of the skin and the whites of the eyes, caused by the accumulation of bilirubin in the blood.

Eosinophil Count

A measure of the number of eosinophils, a type of white blood cell, in the blood, often used to diagnose allergic reactions or parasitic infections.

Parasitic Worm

An organism that lives on or in a host organism and gets its food at the expense of its host, often causing disease.