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:

Promise

An assurance that one will or will not do something in the future.

Unilateral Contract

A unilateral contract is a type of agreement in which an offer can only be accepted through performance, meaning one party promises to do something in return for the act of the other party.

Bilateral Contract

A type of contract involving two parties where each side promises to perform an act in exchange for the other party's act.

Bilateral Contract

An agreement where each of the two parties makes a promise or set of promises to the other.