When a Contract Fails to Meet the Collectibility Criteria the Seller

question 88

Multiple Choice

When a contract fails to meet the collectibility criteria the seller should record any advance payment as a/an ________.

• A)asset
• B)revenue
• C)liability
• D)expense

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Definitions:

Memos

Short for memorandum, a written message used in business communication to convey information or instructions within an organization.

Permanency

The state or quality of lasting or remaining unchanged indefinitely.

Appropriate Closing

A polite and fitting conclusion to a communication, such as a letter or email, often including a thank you or a summary statement.

E-Mail Message

A digital form of communication sent over the Internet, typically consisting of a subject line, body of the message, and optionally, attachments.