Which of the Following Is Not a Condition Required by the SEC

question 80

Multiple Choice

Which of the following is not a condition required by the SEC for the recognition of revenue?

• A)Delivery of goods or rendering of services.
• B)Transfer of cash from the buyer to the seller.
• C)Fixed or determinable price.
• D)Existence of an arrangement.

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Definitions:

Historical Value

An accounting practice of recording assets on the balance sheet at their original cost, without adjustments for inflation or market changes.

Asset

Resources owned by a company or individual that have economic value and can be converted into cash.

Parent-subsidiary Relationship

A corporate structure where one company (the parent) controls another company (the subsidiary) typically through ownership of a majority of its shares.

Partnership

A formal business enterprise where multiple individuals collaborate in management and profit distribution.