ABC Electrical Inc

question 69

Multiple Choice

ABC Electrical Inc.has a contract with a building contractor that provides that in the event of breach,ABC will be entitled to damages of $10 000.Which of the following best describes this type of contract term?

• A) a liquidated damages clause
• B) a condition precedent
• C) an exemption clause
• D) a limitation of liability clause

---

Definitions:

Sales Transactions

The process of exchanging goods or services for money or other assets, recorded by businesses as revenue.

Asset Turnover Ratio

A financial metric indicating how efficiently a company utilizes its assets to generate sales revenue.

Fiscal Period

A defined time period used for financial reporting and budgeting, typically a year, quarter, or month.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.