Vihaan Was Given the Chance to Examine the Tax Returns

question 52

Multiple Choice

Vihaan was given the chance to examine the tax returns and financial statements of a business he is considering for purchase.The seller asked him to sign a _____________ that prohibits Vihaan from sharing this confidential information with anyone else.

• A)franchise contract
• B)due diligence document
• C)franchise disclosure document
• D)non-disclosure agreement

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Definitions:

Unearned Revenue

Money received by a company for services or products which have not yet been delivered or performed.

Advance Subscription Sales

Revenue received from customers for subscriptions that are paid for before the subscription period begins.

Quarterly Journals

Publications that release issues on a quarterly basis, often academic or professional in nature, covering specific field subjects.

Journalized

Refers to the process of recording financial transactions in the chronological order of their occurrence in a company's journal, which is a primary accounting record.