If Parties to a Contract Agree That It Will Not

question 74

Multiple Choice

If parties to a contract agree that it will not be legally enforceable until the happening of a certain event, that term of the contract is known as a:

• A)Condition precedent.
• B)Condition subsequent.
• C)Qualified term.
• D)Prior term.

Apply journal entry recording for various business transactions.

Analyze the impact of transactions on financial statements (balance sheet, income statement, statement of cash flows).

Comprehend the preparation and components of an income statement through operating income.

Differentiate between cash basis and accrual basis of accounting.

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Definitions:

Futures Market

An exchange where participants can engage in the trading of futures contracts that are standardized. These contracts stipulate the buying of certain quantities of a commodity or financial instrument at a fixed price, with delivery arranged for a designated future time.

Spot Prices

The present selling or buying price of an asset available for immediate transfer.

Transaction Costs

The expenses incurred when buying or selling securities, including broker fees and taxes.