Which Statement Is Not Correct About Commitments

question 50

Multiple Choice

Which statement is not correct about commitments?

• A)A commitment to buy equipment must be disclosed if the contract is partially executed.
• B)A commitment to buy equipment must be disclosed even if the contract is unexecuted.
• C)Onerous contracts must be disclosed if they can be reliably measured.
• D)Onerous contract must be recognized in the accounting records.

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Definitions:

Normative Approach

A method or strategy that is based on norms, or standards and values considered to be typical or correct for a specific group.

Brand Purpose

The reason a brand exists beyond making a profit, often reflecting its values and the social or environmental benefit it seeks to provide.

Ethical Framework

A structured set of guidelines or principles designed to guide decision-making and conduct, particularly regarding moral or ethical issues.