A Contract Has Commercial Substance When the Risk,timing,or Amount of

question 21

True/False

A contract has commercial substance when the risk,timing,or amount of
the company's future cash flows is expected to change as a result of the contract.

---

Definitions:

Dividends

Profits distributed by a corporation to its shareholders based on the number of shares they own.

Corporate Profits

The earnings of a corporation after all expenses have been deducted from revenues.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial interest in its performance.

Nonprofit Corporations

Organizations that operate for charitable, educational, religious, or public service objectives, not for profit, and often eligible for tax-exempt status.