SAC 4 Previously Outlined Tests That May Have Been Useful

question 49

Multiple Choice

SAC 4 previously outlined tests that may have been useful in determining if it is probable that an inflow of future economic benefits that is capable of measurement has occurred.These tests included.

• A) That cash has been received.
• B) That an order has been placed or it is possible to reliably estimate the collectability of debts.
• C) That all acts of performance necessary to establish a valid claim against the external party have been completed.
• D) That cash has been received and that all acts of performance necessary to establish a valid claim against the external party have been completed.
• E) None of the given answers.

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Definitions:

Total Investment

The total amount of money spent on acquiring or improving productive assets or investments over a period.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest in the financial markets.

Expected Rates Of Return

Expected rates of return refer to the anticipated profit or loss from an investment, often based on historical data and analysis of future potentials.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.