Which of the Following Is NOT True

question 106

Multiple Choice

Which of the following is NOT true?

• A)Not every breach may distract a contract.
• B)If a breach is of a minor term,the contract is still binding on both parties.
• C)A party to a contract may breach it by acting in a way that makes performance impossible.
• D)If a breach is of an essential term,the party not in breach is still bound,but the party committing the breach may elect to discharge the contract.
• E)A major term may be broken in only a minor respect.

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Definitions:

Accounting Cycle

The process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements, followed by closing the accounts.

Financial Statements

Financial statements are formal records that outline the financial activities and position of a business, person, or entity. These include income statements, balance sheets, and statements of cash flows.

Working Paper

A document that records the evidence, processes, and reasoning behind an accountant's audit or financial analysis.

Income Statement Columns

The structured classification of financial data in the income statement, typically involving revenues, expenses, and net income or loss.