Which of the Following Statements Is True

question 41

Multiple Choice

Which of the following statements is true?

• A)GAAP requires that unconditional non-cancellable purchase obligations be accrued and reported as liabilities on the balance sheet.
• B)Unearned revenues collected in advance should be classified as deferred credits on the balance sheet.
• C)GAAP requires that footnote disclosures of future payments resulting from off-balance-sheet financing transactions be disclosed separately for only the next five years.
• D)If a company sells goods and agrees to repurchase them at a specified price, both a sale and a current liability should be recorded if the requirements of GAAP are to be met.

---

Definitions:

Coefficient of Determination

A statistical measure used to analyze how differences in one variable can be predicted by a difference in a second variable.

Coefficient of Determination

A statistical measure that determines the proportion of the variance in the dependent variable that can be predicted from the independent variable(s).

Multiple Regression

An approach in statistics that leverages various independent variables to estimate the outcome of a target variable.

Life Expectancy

The average number of years an individual or demographic is expected to live, based on statistical analysis of various factors like health, lifestyle, and geographical location.