Q1) Why should executory contracts be disclosed to financial statement users?

A. They call for some form of future performance, which creates an obligation for the reporting company B. They represent a possible inflow of economic resources C. They create current income tax obligations D. They create an obligation contingent upon the occurrence of a past event

Q2) Which one of the following contingencies should most likely not be disclosed on Communications, Inc.s financial statements until it has been resolved? A. A lawsuit by Communications, Inc. against Overseas Communication Co. in which Communications, Inc. will likely win. B. A lawsuit against Communications, Inc. for which it is probable that Communications, Inc. will lose. C. A lawsuit against Communications, Inc. for which it is reasonably possible Communications, Inc. will lose. D. All of the above should be disclosed on the financial statements.