Which of the Following Statements About Executory Contracts Is False

question 12

Multiple Choice

Which of the following statements about executory contracts is false?

• A) Executory contracts are contracts in the process of begin filled.
• B) A purchase order is an example of an executory contract.
• C) Executory contracts are recognized as liabilities when the company receives the benefits
• D) Executory contracts are contingent obligations.

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Definitions:

Interest Payments

The regular required payments made by a borrower to a lender for the use of borrowed money, usually a portion of the loan amount.

Interest-only Loans

Loans for which the borrower pays only the interest on the principal balance, with the principal amount remaining unchanged over a set term.

Variable Rate Mortgages

Mortgages with interest rates that can fluctuate over time based on underlying benchmark interest rates or market conditions.

Housing Prices

The monetary cost of purchasing a house, which can vary widely based on location, size, and market conditions.