Which of the Following Is Not a Criteria Outlined in SEC

question 23

Multiple Choice

Which of the following is not a criteria outlined in SEC Staff Accounting Bulletin No.101 for the recognition of revenue?

• A)Persuasive evidence of an arrangement exists.
• B)Delivery has not occurred.
• C)The vendor's fee is fixed or determinable.
• D)Collectability is probable.

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Definitions:

Current Assets

Short-term assets including cash, inventory, and receivables that are anticipated to be used or liquidated within one business cycle.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Current Obligations

Short-term financial liabilities or debts that are due within one year or within the normal operating cycle of a business.

Firm's Operations

The day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders.