Expressly Designating a Third Party as a Beneficiary in a Contract

question 31

True/False

Expressly designating a third party as a beneficiary in a contract indicates whether the beneficiary is intended or incidental.

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Definitions:

Payroll

The total amount of wages and salaries paid by a company to its employees for a set period, including necessary taxes and deductions.

Share of the Profits

This term refers to the portion of a company's profits allocated to its shareholders or partners, indicating their financial gain from the business's success.

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.