An Individual Who Is Not Party to the Contract Between

question 46

Multiple Choice

An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as

• A) a third party.
• B) a common law inheritor.
• C) a tort.
• D) a third-party beneficiary.

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Definitions:

Effective Interest Rate

This is the actual return on an investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Bond Issue Costs

Expenses associated with the issuance of bonds, including legal, accounting, underwriting fees, and other costs that are often amortized over the life of the bond.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming for global consistency in financial reporting.

Maturity Value

The amount of money an investment will earn and pay out at the end of its life, including the initial principal and all accumulated interest.