Common Provisions in Contracts That Modify the Perfect Tender Rule

question 13

Multiple Choice

Common provisions in contracts that modify the perfect tender rule include the following EXCEPT which of the following?

• A) Only the defective goods can be rejected.
• B) The seller has the opportunity to replace nonconforming goods.
• C) The seller has the opportunity to repair defective goods.
• D) The buyer can reject any or all goods in a nonconforming shipment.
• E) The buyer will accept nonconforming goods with an appropriate price concession from the seller.

Understand the concept and calculation of discounts on purchases.

Grasp the perpetual and periodic inventory systems and their impact on accounting records.

Identify the effects of merchandise returns and allowances on accounts payable and merchandise inventory.

Explain the process and significance of a Schedule of Accounts Payable.

---

Definitions:

Developing Countries

Nations with lower levels of economic wealth, industrial base, and human development index compared to developed countries, often working towards improving these aspects.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

World Bank

A global economic institution that provides funding and grants to the governments of less developed countries for the purpose of capital project completion.

Technical Assistance

Support provided, usually to developing countries or firms, in the form of expertise or knowledge transfer to foster growth or solve specific problems.