When the Entire Contract Is Conditioned on Something Else Occurring

question 32

Multiple Choice

When the entire contract is conditioned on something else occurring first,the first event is called a[n] ________.

• A)Advance.
• B)Condition precedent.
• C)Foregoing condition.
• D)Foreseeable event.
• E)Preceding condition.

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Definitions:

Financial Statements

Documents offering a summary of a firm's financial status, encompassing the balance sheet, income statement, and cash flow statement.

Probable Loss

An estimated financial loss from future events that are considered likely to occur based on current evidence or events.

Economic Sacrifice

A concept referring to the cost or loss associated with making a particular decision or taking an action.

Disclosure Note

A note included in financial statements that provides additional information relevant to an organization's financial position.