Firms Frequently Sign Contracts Promising to Pay Defined Amounts in the Future

question 39

Multiple Choice

Firms frequently sign contracts promising to pay defined amounts in the future in return for future benefits.If the firm has not received past or current benefits, but will receive the benefits in the future, accounting treats the obligation as a(n) _____ contract and typically _____.

• A)contingent; does recognize a liability
• B)executory; does not recognize a liability
• C)executory; does recognize a liability
• D)contingent; does not recognize a liability
• E)future; does recognize a liability

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Definitions:

Dissociative Identity Disorder

A psychological disorder characterized by the presence of two or more distinct personality states or identities within a single individual.

Insecure Attachments

A type of attachment style observed in some children who show anxiety or avoidance in relationships, often as a result of inconsistent caregiving.

Addicted to Alcohol

A physical and psychological dependence on alcohol, characterized by a compulsion to drink and a difficulty in controlling consumption despite adverse effects.

Suppress Anxieties

The act of consciously or unconsciously preventing anxious thoughts or feelings from becoming apparent.