Which of the Following Is NOT an Example of an Entity

question 26

Multiple Choice

Which of the following is NOT an example of an entity retaining significant risks and rewards of ownership?

• A) The entity retains an obligation for unsatisfactory performance not covered by normal warranty provisions.
• B) The receipt of revenue from a particular sale is contingent on the buyer reselling the goods.
• C) The goods are shipped subject to installation, and the installation is a significant part of the contract that has not yet been completed by the entity.
• D) The buyer has the right to rescind the purchase for a reason specified in the sales contract. The entity is confident that this option will not be exercised.

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Definitions:

Schizophrenia

A mental health condition marked by disturbances in cognitive functions, sensory experiences, affectivity, and interpersonal behaviors.

Stressful Life Situation

Circumstances or events that place a physical or psychological demand on an individual, often leading to stress.

North America

A continent located primarily in the Northern Hemisphere and almost entirely in the Western Hemisphere, comprising countries like the United States, Canada, and Mexico.

February

The second month of the year in the Gregorian calendar, characterized by having 28 days in a common year and 29 days in a leap year.