A Contract Does Not Exist for Purposes of Applying the Revenue

question 48

Multiple Choice

A contract does not exist for purposes of applying the revenue recognition principle in all of the following cases except for when:

• A) The seller believes it is not probable that it will collect the amount it's entitled to receive under the contract.
• B) The seller and buyer did not sign a formalized written contract.
• C) The seller and buyer can terminate the contract without penalty and neither has performed any obligations under the contract.
• D) The seller believes it is highly likely but not certain that the buyer will agree to the terms of the contract.

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Definitions:

Explore Reasons

The investigation or inquiry into the causes or motivations behind certain actions or conditions.

Right of Medication

Refers to the patient's right to receive appropriate and correctly administered medications as part of their care.

Medication Administration

The process of giving medication to a patient in accordance with a prescription.

Synergistic Effect

Effect resulting from two drugs acting synergistically. The effect of the two drugs combined is greater than the effect that would be expected if the individual effects of the two drugs acting alone were added together.