Which of the Following Statements Regarding Contractual Commitments Is INCORRECT

question 49

Multiple Choice

Which of the following statements regarding contractual commitments is INCORRECT?

• A)Even though contractual commitments are slightly different, the disclosures fall into the same category as contingencies.
• B)Commitments represent contractual promises a company has made to enter into transactions in the future and thus obligate the company to commit resources toward a certain purpose.
• C)It would not be proper to accrue commitments because the transactions have not yet occurred as of the balance-sheet date.
• D)All contractual commitments must be disclosed, regardless of whether there will be a substantial impact on the company's financial statements in future years.

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Definitions:

Matrix

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