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Which of the Following Is a Pervasive Constraint Under the "Original

question 56

Multiple Choice

Which of the following is a pervasive constraint under the "original" qualitative characteristics of accounting, pre-SFAC No. 8? It is an entity-specific constraint post SFAC No. 8.


Definitions:

Past Consideration

Something of value that has been given or promised in the past and cannot serve as consideration for a current contract due to its occurrence before the contract was made.

Present Promise

A vow or commitment to take action or uphold terms at the current time.

Moral Obligation

A duty or responsibility that is perceived as ethically required, even though it is not legally enforceable.

Requirements Contract

A contractual agreement in which one party agrees to supply as much of a product or service as the other party needs during a specified period.

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