Under the UCC, the Meaning of Any Agreement Must Be

question 33

True/False

Under the UCC, the meaning of any agreement must be interpreted in light of commercial practices, so a court will not assume that the usage of trade was taken into account when the agreement was phrased.

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Definitions:

Revenue Accounts

Accounts that track the income earned by a business from its operational activities, such as sales of goods or services.

Credit

An accounting entry that increases the balance of liabilities and equity accounts, or decreases the balance of an asset or expense account.

Stockholders' Equity

The equity held by stockholders in a corporation, determined by subtracting total liabilities from total assets.

Dividends Account

An account used in accounting to track distributions of earnings paid to shareholders.