A Firm Signs a Major Contract in December to Construct

question 50

Multiple Choice

A firm signs a major contract in December to construct custom machinery for a client. No work is begun the current year, yet the notes to the firm's financial statements discuss the nature and dollar amount of the contract. This is an example of

• A) Reliability
• B) Full disclosure
• C) Historical cost
• D) Conservatism
• E) None of these answers are correct.

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Definitions:

Physical Disabilities

Conditions that substantially limit one or more of an individual's major life activities due to physical impairments.

Americans With Disabilities Act

U.S. legislation passed in 1990 aimed at prohibiting discrimination and ensuring equal opportunity for individuals with disabilities in employment, public accommodations, and other areas.

Race

A social construct used to categorize humans into large and distinct populations or groups by heritable physical, social, and cultural traits.

Culturally Inherited Traits

Characteristics, values, or customs passed down from one generation to another within a culture.