Which of the Following Does NOT Correctly Describe the Implications

question 40

Multiple Choice

Which of the following does NOT correctly describe the implications of an executory contract on the accounting entries and/or disclosures to be made by the purchaser and/or seller?

• A) Assets and liabilities are usually recorded at inception of the contract.
• B) Assets and liabilities are usually not recorded at inception of the contract.
• C) Contract details should be disclosed if the amounts are abnormal in relation to the entity's normal business operations.
• D) Assets and liabilities are recognized as performance has occurred.

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Definitions:

Parametric Test

A category of hypothesis tests that assumes underlying statistical distributions in the data and usually involves parameters such as the mean or variance.

Wilcoxon Rank-sum Test

A nonparametric statistical test used to compare two independent samples, based on the ranks of their values, to determine if there are significant differences between them.

Ordered Array

A sequence of elements arranged in ascending or descending order, often used in computer programming for sorting and searching algorithms.

Pooled Sample Data

Combining data from different sources or groups to increase statistical power or assess overall effects.