If the Unavoidable Costs of Completing a Purchase Commitment Are

question 18

Multiple Choice

If the unavoidable costs of completing a purchase commitment are higher than the expected benefits from receiving the contracted goods or services, IFRS requires a loss provision to be recognized. This is known as a(n)

• A) executory contract.
• B) purchase commitment.
• C) onerous contract.
• D) impaired contract.

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Definitions:

Young Apprentices

Individuals, often minors, who are learning a trade or craft from a skilled employer, gaining practical experience while often receiving some form of education.

Jean Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.

Lev Vygotsky

A psychologist from Russia recognized for his contributions to understanding cognitive growth, especially his theory on the Zone of Proximal Development.

Lawrence Kohlberg

A psychologist known for his theory of moral development, which suggests that individuals progress through stages of moral reasoning as they grow.