________ Occurs When a Party to a Contract Either Expresses

question 46

Multiple Choice

________ occurs when a party to a contract either expresses or clearly implies an intention not to perform the contract,even before being required to act.

• A)Frustration-of-purpose
• B)Abandonment of contractual obligations
• C)Commercial impracticability
• D)Anticipatory breach

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Definitions:

Interest Expense

The cost incurred by a company for borrowing funds, represented as the interest payments made on any borrowed capital.

Operating Income

Earnings before interest and taxes (EBIT), calculated by subtracting operating expenses from gross profit.

Operating Cycle

The average time period between purchasing goods for inventory and receiving cash from selling those goods.

Accounts Receivables

Sums due to a company from its customers for products or services rendered but not yet compensated for.