An Award of Damages

question 36

Multiple Choice

An award of damages

• A)seldom comes out of a case for breach.
• B)aims to place the injured party in the same position as if the contract had been completed.
• C)is an "equitable remedy" for breach.
• D)usually accompanies a rescission.
• E)is a tool used by the courts to act as a punishment to those who breach a contract.

---

Definitions:

Allowance for Doubtful Accounts

An accounting concept referring to an estimate of the amount of receivables that may not be collected, which is used to reduce the total accounts receivable reported on the balance sheet.

Prior-Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in previously issued financial statements from prior periods.

Trade Receivables

The amounts owed to the business by customers for products or services that have been delivered or used but not yet paid for.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.