Match the Term with Its Correct Definition

question 56

Multiple Choice

Match the term with its correct definition.
-Form that companies must file with the SEC to announce major events that are important to investors and creditors.

• A)Form 8-K
• B)Form 10-K
• C)Form 10-Q
• D)Forms S1 and S2
• E)MD&A

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Definitions:

Provision

An amount set aside in the accounts to cover a probable future expense or liability, recognized for known obligations of uncertain timing or amount.

Onerous Contract

A contract where the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

Unavoidable Costs

Costs that cannot be eliminated, reduced, or postponed, and must be incurred regardless of specific business decisions or changes in operations.

Present Value Method

A technique used to determine the present value of future cash flows or income streams to evaluate investment projects or financial products.