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Aspen Company signs a contract with a supplier promising to buy a certain number of units in the future at a specified price. None

 

Aspen Company signs a contract with a supplier promising to buy a certain number of units in the future at a specified price. None of the units have yet been delivered by the supplier. Which of the following statements is true? A liability should be recorded to reflect the present value of the contract. OThe purchase commitment should be disclosed in the notes. Financial statement users would not be interested in this information as no exchange has yet occurred. None of the above.

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