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.

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Definitions:

Task Analysis

The process of breaking down a task into its component parts to understand the skills, knowledge, and processes involved in its completion.

Needs Analysis

The process of identifying and evaluating the needs or gaps within an organization or among individuals to determine the required training interventions.

External Service Provider

A third-party company or individual that offers services outside of the primary organization's core activities.

Senior Management Preference

The choices or inclinations of top executives in an organization regarding strategic decisions, policies, or practices.