Which of the Following Factors Would Be an Indicative of High

question 64

Multiple Choice

Which of the following factors would be an indicative of high quality earnings?

• A) Earnings are close to cash.
• B) Earnings are the result of repeat business.
• C) Revenue recognition is based on the installment principle.
• D) All of the above.
• E) None of the above.

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Definitions:

Restatement

A rephrasing or recompilation of legal principles in a specific area aiming to simplify and clarify the law without having binding authority.

Consideration

Something of value that is exchanged between parties entering into a contract, making the agreement legally binding.

Legal Sufficiency

The condition of an agreement or document meeting all required legal standards and formalities to be recognized as valid and enforceable in a court of law.

Adequacy

The quality or state of being sufficient for a particular purpose or in fulfilling requirements.