Question 1
Which of the following is
not considered a commitment?
◦ agreements to purchase raw materials
◦ pension plans
◦ agreements to lease facilities at set prices
◦ Each of these is a commitment.
Question 2
With which of the following client personnel would it generally
not be appropriate to inquire about commitments or contingent liabilities?
◦ controller
◦ president
◦ accounts receivable clerk
◦ vice president of sales