Promises That Are Legally Binding Include

question 1

Multiple Choice

Promises that are legally binding include

• A)a promise to take a friend to lunch.
• B)a promise to pay for items ordered online.
• C)a promise to watch a certain sporting event.
• D)all of the choices.

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Definitions:

IFRS 8

Refers to the International Financial Reporting Standard dealing with operating segments, requiring particular ways of financial reporting by segment to enhance transparency and comparability.

Reportable Segment Revenues

The revenues generated by each distinguishable segment of a company, as required to be disclosed in financial statements under certain accounting standards.

Revenue Test

An accounting principle used to determine when revenue should be recognized in the financial statements, typically requiring that revenue is earned and measurable.

Reportable Segments

Portions of a business that can be separately reported due to their significant activities, differing from other parts of the company, often requiring disclosure under financial regulations.