An executory contract falls within the provisions rules only if it is:
ALong term
BOnerous
CWritten
DForeign
Answer & Solution
Correct answer: B. Onerous
Executory contracts, where neither party has performed, are outside the rules unless they have become onerous.
Keep practising AS 29 Provisions and Contingencies
Browse all AS 29 Provisions and Contingencies questions for CA Inter, or explore more Accounting topics.
Related questions
Use of estimates in preparing a provision:A present obligation where outflow is not probable is classed as a:To whom can an obligation be owed?Which obligation exists independently of the entity's future actions?A restructuring plan creates an obligation only if it is meant to:Which is evidence that a restructuring plan has started to be implemented?Depreciation and doubtful debt provisions are really:A provision and contingent liability arise from the same facts. Disclosure should: