Which of the Following Does NOT Correctly Describe the Implications

question 155

Multiple Choice

Which of the following does NOT correctly describe the implications of an executory contract on the accounting entries and/or disclosures to be made by the purchaser and/or seller?

• A)Assets and liabilities are usually recorded at inception of the contract.
• B)Assets and liabilities are usually not recorded at inception of the contract.
• C)Contract details should be disclosed if the amounts are abnormal in relation to the entity's
• Normal business operations.
• D)Assets and liabilities are recognized as performance has occurred.

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Definitions:

Employment Agency

An organization that matches employers with job seekers.

Weekly

Once per week.

Biweekly Gross Pay

The total amount of earnings paid every two weeks before any deductions are applied.

Annual Salary

The total earnings of an individual from their job before taxes and other deductions, calculated on a yearly basis.