Which of the following statements regarding contracts is INCORRECT?
A)The process of revenue recognition is based on contracts that the entity has with outsiders.
B)A contract is an agreement between two parties that creates enforceable rights or performance obligations.
C)Only written contracts are valid.
D)Identifying the contract with the customer is the first step of the revenue recognition model.

Question

Quizplus · Accepted Answer

This statement is incorrect as contracts can be valid and enforceable even if they are not necessarily in writing. However, some contracts may be required by law to be in writing, such as contracts for the sale of real estate.

Which of the Following Statements Regarding Contracts Is INCORRECT