Which of the Following Is Not a Characteristic of a Complete

question 30

Multiple Choice

Which of the following is not a characteristic of a complete contract?

• A)The contract allows for a party to exploit weaknesses in another party's position as the transaction unfolds
• B)Elimination of opportunistic behaviors
• C)Stipulation of each party's responsibilities and rights
• D)Binding instruction for each party on courses of action as the transaction unfolds
• E)Must be enforceable

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Definitions:

Fair Value

The cost one would incur to sell an asset or to assume a liability during a structured exchange with participants in the market at the time of assessment.

Net Realizable Value

The estimated selling price of goods minus the sum of the cost of completion and the costs necessary to make the sale.

Allowance for Uncollectibles

An accounting provision made for accounts receivable that may not be collected due to customer defaults or other reasons.

Accounts Receivable Balances

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.