Why Should a Director or Officer of a Corporation Ensure

question 43

Essay

Why should a director or officer of a corporation ensure that a contract is signed in such a way as to make it clear that it is being signed on behalf of the corporation?

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Definitions:

End-Of-Period Cash Balance

The amount of cash on hand at the conclusion of a financial reporting period.

End-Of-Period Net Income

The net income calculated at the end of an accounting period, reflecting the total earnings after accounting for all expenses and revenues.

Accounting Recognition

This refers to the process of recording financial transactions in the financial statements according to accepted accounting principles.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.