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:

Peer-group Status

The level of respect, influence, or popularity an individual has within a group of peers.

Antisocial Conduct

A pattern of behavior that is verbally or physically harmful to other people, animals, or property, including behavior that severely violates social expectations for a given environment.

Religious Services

Ceremonial acts of worship and practices observed by individuals or groups based on their religious beliefs.

Feel Closer to God

An emotional or spiritual state where an individual feels a stronger connection or a deeper relationship with a divine entity.