Which of the Following Commitments Would NOT Require Disclosure in the Financial

question 5

Multiple Choice

Which of the following commitments would NOT require disclosure in the financial statement notes?

• A) major property, plant and equipment expenditures
• B) payments under non-cancellable operating leases
• C) large purchases of materials in the normal course of business
• D) commitments involving significant risk

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Definitions:

Policies, Rules

Established guidelines and instructions that dictate the expected conduct and procedures within an organization or society.

Direct Supervision

The act of overseeing employees' work directly, often with the supervisor physically present or in close proximity.

Functional Departmentation

Is grouping individuals by skill, knowledge, and action.

Grouping of Individuals

The organization or classification of people into groups based on shared characteristics, objectives, or interests.