Occurrences That Have the Potential to Affect the Entity in Some

question 24

Short Answer

Occurrences that have the potential to affect the entity in some way,but that will not be recorded as business transactions until an exchange of goods or services takes place between the entity and an outside party are known as ______________ ______________.

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Definitions:

Substitute

A replacement or alternative for someone or something.

Contract

A binding contract between multiple parties that is supported by legal enforcement.

Principal Purpose

The primary or predominant reason for which an activity, agreement, or operation is intended or carried out.

Substantially Frustrated

A condition in contract law when an unforeseen event undermines the purpose of the contract, justifying its termination.