A contract must have commercial substance to be legally enforceable. may qualify

Question

A contract

must have commercial substance to be legally enforceable.

may qualify for revenue recognition even if one party can unilaterally cancel the contract before performance.

must be in writing to be enforceable for accounting purposes.

is an agreement that creates enforceable rights and obligations.

must have commercial substance to be legally enforceable.

may qualify for revenue recognition even if one party can unilaterally cancel the contract before performance.

must be in writing to be enforceable for accounting purposes.

is an agreement that creates enforceable rights and obligations.

Explanation / Answer

Under ASC606, A Contract is defined as an agreement between two or more parties that creates enforceable rights and obligations.

So the Answer is D

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