E-Sign

question 27

Multiple Choice

E-Sign:

• A) preempts the Uniform Electronic Transactions Act.
• B) requires persons to agree to use or accept electronic records or electronic signatures,provided they are informed of the types of hardware and software required and they have the required equipment.
• C) defines the included transactions narrowly.
• D) ensures that the electronic form of Internet and e-mail agreements will not make them unenforceable because of the statute of frauds.

Understand the accounting treatment for sale and purchase of bond investments.

Recognize the impact of stock ownership percentages on income recognition and consolidation.

Know the components and calculation of the cost of bond investments.

Identify the types of financial statements and their purposes.

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Definitions:

CISG

Stands for the United Nations Convention on Contracts for the International Sale of Goods, which provides a uniform framework for international commerce.

Risk Of Loss

The potential that an investment's value may decrease, or that the property may be destroyed, damaged, or lost, impacting the holder's financial position.

Sales Contract

A legal agreement between a buyer and a seller which outlines the terms and conditions of a sale of goods or services.

Damaged Goods

Items that are broken, defective, or impaired in such a way that they cannot perform their intended function.