An Incidental Beneficiary Has a Right to Enforce a Contract

question 73

True/False

An incidental beneficiary has a right to enforce a contract.

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Definitions:

Bond Discount

The discrepancy between a bond's nominal value and its market price when it is traded at a price below its nominal value.

Expense Recognition Principle

An accounting guideline that dictates expenses to be recorded in the period they are incurred to generate revenue, ensuring accurate financial statements.

Historical Cost Principle

An accounting principle that states all assets should be recorded and accounted for based on their original purchase cost.

Discount on Bonds Payable

An amount by which a bond is sold below its face value, reflecting the difference between the market rate of interest and the bond's coupon rate.