Business enterprises enter into many different types of contracts.Examples of such contracts that often contain language that refers to verifiable financial statement numbers include all of the following except
A)royalty contracts with inventors.
B)sales contracts with customers.
C)compensation contracts with managers.
D)debt contracts with bankers.

Question

Quizplus · Accepted Answer

Sales contracts with customers typically do not contain language referring to verifiable financial statement numbers. Instead, they focus on the terms of sale, such as quantity, price, delivery, and payment terms. In contrast, royalty contracts, compensation contracts, and debt contracts often include terms that are directly tied to financial performance or position, necessitating reference to financial statement numbers.

Business Enterprises Enter into Many Different Types of Contracts