Which of the Following Statements Regarding Contracts Is INCORRECT

question 54

Multiple Choice

Which of the following statements regarding contracts is INCORRECT?

• A)The process of revenue recognition is based on contracts that the entity has with outsiders.
• B)A contract is an agreement between two parties that creates enforceable rights or performance obligations.
• C)Only written contracts are valid.
• D)Identifying the contract with the customer is the first step of the revenue recognition model.

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Definitions:

Predictive Validity

The extent to which a test score or measure can predict future performance or outcomes.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure taken at the same time.

Reliability

The consistency and dependability of a measurement tool or test over time.