A Condition Is

question 52

Multiple Choice

A condition is

• A)a fundamental event that must be fulfilled before another can happen.
• B)a contractual obligation that must happen before another can take place.
• C)a term of a contract that must be fulfilled by the promisee.
• D)an essential term of a contract.
• E)a contractual event that must take place before another can happen.

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Definitions:

External Reporting

The process of providing financial statement information to external stakeholders such as investors, creditors, and regulatory agencies.

Statement of Income

A financial document that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Reconciliation

The process of ensuring two sets of records, such as bank statements and company ledgers, are in agreement, identifying discrepancies, and making adjustments if necessary.