A Third Party Who Is Unable to Establish That the Contract

question 3

Multiple Choice

A third party who is unable to establish that the contract was made with the intent to benefit her is called a(n) :

• A)donee beneficiary.
• B)incidental beneficiary.
• C)promisee.
• D)creditor beneficiary.

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Definitions:

Perpetual Inventory System

An inventory management method where inventory levels are updated in real time with each sale or purchase transaction.

Gross Method

A method of recording purchases at the gross invoice amount before deducting any cash discounts.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made, used to verify the balance of debits and credits before generating financial statements.

Multiple-Step Income Statement

A detailed financial statement that divides revenue and expenses into separate categories, such as operating and non-operating sections, to highlight different aspects of business performance.