Distinguish between conditions and covenants
What will be an ideal response?
A covenant is an unconditional promise to perform. Nonperformance of a covenant is a breach of contract that gives the other party the right to sue. Some contract provisions are conditions rather than covenants. A conditional promise (or qualified promise) is not as definite as a covenant. The promisor's duty to perform or not perform arises only if the condition does or does not occur. It becomes a covenant if the condition is met.
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The information reported in the income statement can be used to predict a company's future income and cash flows
Indicate whether the statement is true or false
Frances has a compromising conflict-handling style. All of the following are true of her style except ______.
A. She has a moderate level of concern for herself and a moderate level of concern for others. B. It is appropriate when both parties have strongly opposing views and there is little hope of an integrative solution. C. Both parties are completely satisfied with the outcome. D. It may be the only possible approach when both parties have equivalent influence in the organization.
According to the goods/services continuum, which of the following is the best example of a pure good?
A) a textbook B) a class lecture C) a haircut D) a muffler repair E) a massage
A capital lease is accounted for as if the asset has been purchased
Indicate whether the statement is true or false