Meaning of Contract Account - SS3 Accounting Past Questions and Answers - page 1

1

What is a contract account?

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A

A document detailing the terms and conditions of a contract

B

A detailed record of financial transactions and obligations between parties in a contract

C

An account used for paying contract employees

D

A type of insurance policy for contractual agreements

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2

What is the purpose of a contract account?

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A

To keep track of payments, expenses, and other financial activities related to a specific contract

B

To negotiate the terms of a contract

C

To advertise a contract to potential parties

D

To terminate a contract

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3

Which industries commonly use contract accounts?

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A

Healthcare and education

B

Hospitality and entertainment

C

Construction, real estate, and finance

D

Agriculture and transportation

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4

Who typically manages contract accounts?

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A

Legal professionals

B

Human resources personnel

 

C

Accountants or financial professionals

D

Marketing professionals

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5

What is the importance of contract accounts?

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A

They help to ensure that all parties involved in the contract are aware of their financial responsibilities

 

B

They provide a detailed record of the financial status of a contract

C

They help to ensure that the terms of the agreement are being met

D

All of the above

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6

What is the main purpose of a contract account?

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7

Which industries commonly use contract accounts?

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