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.

---

Definitions:

Transtheoretical Model

A theory of behavior change that describes the process of intentional change through distinct stages.

Stages of Change

A psychological model that outlines an individual's journey towards changing behavior, typically presented in five or six stages including precontemplation, contemplation, preparation, action, maintenance, and sometimes relapse.

Motivational Stages

The various phases an individual goes through in the process of changing behavior, typically modeled within theories such as the stages of change model.

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place by considering their attitudes, subjective norms, and perceived control over the behavior.