Which of the following statements regarding contractual commitments is INCORRECT?
A)Even though contractual commitments are slightly different, the disclosures fall into the same category as contingencies.
B)Commitments represent contractual promises a company has made to enter into transactions in the future and thus obligate the company to commit resources toward a certain purpose.
C)It would not be proper to accrue commitments because the transactions have not yet occurred as of the balance-sheet date.
D)All contractual commitments must be disclosed, regardless of whether there will be a substantial impact on the company's financial statements in future years.

Question

Quizplus · Accepted Answer

Not all contractual commitments must be disclosed; only those that are significant and could impact the company's financial position or operations need to be disclosed.

Which of the Following Statements Regarding Contractual Commitments Is INCORRECT