Which of the Following Provides the Best Example of Discharge

question 23

Multiple Choice

Which of the following provides the best example of discharge by accord and satisfaction?

• A)A customer prepays for 5 kilograms of prime rib,but cancels the order because he instead wants to buy 25 kilograms of filet mignon for a business party.
• B)A butcher's shop changes ownership and the new owner fills the outstanding orders.
• C)A butcher fills his order two days late because he was seriously ill.
• D)A butcher runs out of Grade AAA beef and offers Grade A as a substitute (with a good discount)to all customers with existing orders.
• E)A butcher's shop burns down and the owner is not able to fill his orders.

---

Definitions:

IRRs

The Internal Rate of Return is a financial measurement utilized to assess the projected profitability of future investments.

After-Tax Cost

After-Tax Cost is the expense associated with a transaction or activity, taking into account the effect of income tax deductions or liabilities.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary according to income or profit levels.

Cost of Debt

The cost of debt is the effective rate that a company pays on its total debt, used in capital structuring decisions to evaluate the affordability of borrowing.