An Executory Contract Is One That

question 12

Multiple Choice

An executory contract is one that

• A) is missing some requirement of the law.
• B) has not been completely performed by all parties.
• C) will not be enforced by a court of law.
• D) has been prepared in written form.

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Definitions:

Consolidation Worksheet

A consolidation worksheet is a tool used in the preparation of consolidated financial statements. It helps in the adjustment and elimination of intra-group transactions and balances among the parent and subsidiary companies.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of an acquired company's net assets, attributed to factors like reputation or customer loyalty.

Impairment

A decrease in the recoverable value of an asset below its carrying amount, leading to a write-down and charge against earnings.

Consolidating

The process of combining financial statements from multiple departments or subsidiaries within a company to create a single set of financial statements.