Which of the Following Is Not One of Methods Used

question 26

Multiple Choice

Which of the following is not one of methods used by GAAP for treating value changes?

• A) Recognize value changes on the balance sheet and income statement when they are realized in a market transaction
• B) Recognize value changes in the income statement when the value changes occur over time, but recognize them on the balance sheet when they are realized in a market transaction
• C) Recognize value changes on the balance sheet when the value changes occur over time, but recognize them in the income statement when they are realized in a market transaction
• D) Recognize value changes on the balance sheet and income statement when they occur over time, even though they are not realized in a market transaction

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Definitions:

Professional Entertainer

An individual who performs for an audience in various media or live venues as a paid occupation.

Substantial Performance

A legal term indicating that enough of a contract has been fulfilled to warrant payment, even if minor details remain incomplete.

Contracted

Engaged or bound by an agreement or contract which specifies the terms and conditions of a relationship or transaction.

Flower Arrangements

The art of organizing and designing flowers and foliage into a pleasing and coherent display, often for decorative purposes.