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

---

Definitions:

Special Rules

Specific regulations or guidelines designed to address particular scenarios or areas within a broader regulatory framework.

Acceleration

A provision in a contract that allows a lender to demand immediate payment of the entire outstanding balance if certain conditions are not met.

Payment

The transfer of money or its equivalent in exchange for goods, services, or to settle a debt.

Time Certain

A specific point in time agreed upon at which an event must occur or a condition must be met.