A contract does not exist for purposes of applying the revenue recognition principle in all of the following cases except for when: Multiple Choice

a. The seller believes it is not probable that it will collect the amount it's entitled to receive under the contract.

b. The seller and buyer did not sign a formalized written contract.

c. The seller and buyer can terminate the contract without penalty and neither has performed any obligations under the contract.

Explanation:

Revenue Recognition Principle lays down several rules for the existence of a contract. It states that probable sum of payment should not be counted as revenue until the contract is completely done.

It also states that the seller and buyer can terminate the contract without penalty if neither has performed any obligations in the contract. The contract can be cancelled if no payments have been made.

However, it is important to identify the contract by both the seller and buyer. They should sign a formalized written contract before any work is initiated.

vehicle inspection tests are conducted to ensure that a vehicle is safe to operate. during the vehicle inspection test, you will be expected to explain or show your knowledge of the vehicle inspection process.

during the vehicle inspection test, you must show that the vehicle is safe to drive. you will have to walk around the vehicle and point to or touch each item and explain to the examiner what you are checking and why. you will not have to crawl under the hood or under the vehicle. the brake lights, emergency flashers, turn signals, and horn must be checked. if any of these items do not work, the skills and road portions of the test will be postponed.

answer:

d

explanation: