Meaning of Contract Account - SS3 Accounting Past Questions and Answers - page 1
What is a contract account?
A document detailing the terms and conditions of a contract
A detailed record of financial transactions and obligations between parties in a contract
An account used for paying contract employees
A type of insurance policy for contractual agreements
What is the purpose of a contract account?
To keep track of payments, expenses, and other financial activities related to a specific contract
To negotiate the terms of a contract
To advertise a contract to potential parties
To terminate a contract
Which industries commonly use contract accounts?
Healthcare and education
Hospitality and entertainment
Construction, real estate, and finance
Agriculture and transportation
Who typically manages contract accounts?
Legal professionals
Human resources personnel
Accountants or financial professionals
Marketing professionals
What is the importance of contract accounts?
They help to ensure that all parties involved in the contract are aware of their financial responsibilities
They provide a detailed record of the financial status of a contract
They help to ensure that the terms of the agreement are being met
All of the above
What is the main purpose of a contract account?
The main purpose of a contract account is to keep track of payments, expenses, and other financial activities related to a specific contract.
Which industries commonly use contract accounts?
Contract accounts are commonly used in industries such as construction, real estate, and finance.