A(n) __________ Is an Intended Beneficiary of a Contract Who

question 73

Multiple Choice

A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

• A) intended beneficiary
• B) donee beneficiary
• C) incidental beneficiary
• D) assignor

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Definitions:

Contingent Rentals

Lease payments that are not fixed and determined but depend on a future event or condition.

Operating Lease

A lease agreement allowing the lessee to use an asset for a shorter period than the asset's useful life without ownership rights.

Implicit Interest Rate

The interest rate that equates the present value of lease payments to the fair value of the leased asset, often used in lease agreements.