Which of the Following Is Not a Third-Party Beneficiary Contract

question 16

Multiple Choice

Which of the following is not a third-party beneficiary contract?

• A) a contract in which A hires B to give A's niece piano lessons
• B) a contract to repair sewers in front of Macy's Department Store
• C) a life insurance contract with a named beneficiary
• D) a contract between X and Y for Y to install a new door on Z's home

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Definitions:

Fair Value

The cost expected to be received for an asset sale or to be paid for transferring a liability during a well-organized interaction between market actors as of the valuation moment.

Subsidiary's Equity

The portion of equity (capital and reserves) in a subsidiary company that is attributable to its owners, including both parent and non-controlling interests.

Consolidation Adjusting Entries

Adjustments made in accounting records to remove the effects of intercompany transactions during the consolidation process for a group’s financial reporting.

Accounting Periods

Defined time frames in which financial transactions are recorded and financial statements are prepared.