Which of the Following Statements Is NOT Correct

question 24

Multiple Choice

Which of the following statements is NOT correct?

• A) A contribution receivable should be recognized as an asset when the amount can be reasonable estimated and the ultimate collection is reasonably assured.
• B) A contribution receivable should be recognized as an asset when the amount can be reasonable estimated or the ultimate collection is reasonably assured.
• C) A contribution receivable is one where in the contributor receives nothing directly in return for his or her contribution.
• D)Government grants may qualify as contributions receivable.

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Definitions:

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other items on credit.

Accounts Payable

Accounts payable is the amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Inventory

Raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.