The Commitment Concept Means That Plans Should Extend Far Enough

question 7

True/False

The commitment concept means that plans should extend far enough to meet those commitments made when the plans were developed.

---

Definitions:

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Dividends Payable

This refers to the amount of declared dividends owed by a company to its shareholders but has not yet been paid out.

Stockholders

Individuals or entities that own shares in a corporation, giving them a partial ownership interest in the company.

Accumulated Depreciation

is the total amount of depreciation expense that has been recorded for a fixed asset since it was put into use.