Which Statement Most Accurately Describes Third Party Beneficiary Rights

question 18

Multiple Choice

Which statement most accurately describes third party beneficiary rights?

• A)A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.
• B)If a promisee intended to make a gift to the beneficiary,the beneficiary may not enforce the contract.
• C)An intended third party beneficiary has no enforceable rights in a contract.
• D)Incidental beneficiaries have enforceable rights against both contracting parties.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that are globally accepted.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Straight-Line Method

A depreciation technique that allocates an equal portion of the cost of an asset to each year of its useful life.

U.S. GAAP

In the United States, the Generally Accepted Accounting Principles represent a standard set of guidelines for financial accounting.