Commitments,such as Contracts for Future Transactions

question 169

Multiple Choice

Commitments,such as contracts for future transactions:

• A)Are classified as liabilities.
• B)Are classified as assets.
• C)Are footnoted in financial statements,if material.
• D)Are only disclosed if negative due to the principle of conservatism.

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Definitions:

Middle Passage

The sea journey undertaken by slave ships from West Africa to the Americas, a central part of the Atlantic slave trade where millions of Africans were forcibly transported to the New World.

Africans

Refers to individuals from Africa, the second-largest continent, with diverse cultures, languages, and historical backgrounds.

Quakers

A religious group officially known as the Religious Society of Friends, known for their pacifist beliefs and practices.

Social Development

The process of improving the well-being of individuals in society through measures that include education, health care, economic opportunity, and social justice.