A __________ Is a Party Who Is Not Part of an Original

question 149

Multiple Choice

A __________ is a party who is not part of an original contract who acquires rights under the contract.

• A)second-party beneficiary
• B)third-party beneficiary
• C)sub-standard beneficiary
• D)offeror
• E)offeree

Learn about adjustments and reporting for investments in financial statements.

Distinguish between different methods of reporting investments based on the level of influence/control.

Understand the classification of investment securities (debt vs. equity) and related investment terms.

Identify and categorize investments as held-to-maturity, trading, or available-for-sale securities.

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Definitions:

Equipment Account

An account on the balance sheet representing the cost of equipment a company owns.

Goodwill Impairment

An accounting charge that occurs when the book value of goodwill exceeds its fair market value, indicating the assets are worth less than their currently recorded value.

Fair Value

An estimation of the market value of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties.

Reporting Unit

A component of an organization for which discrete financial information is available and is reviewed regularly by the operations’ segment manager.