Assume That One Party to a Contract Does Not Complete

question 17

Multiple Choice

Assume that one party to a contract does not complete her end of the agreement. The other person sues and is awarded money that is about equal to the damages sustained by the breach of contract. This money is known as

• A) punitive damages.
• B) consideration.
• C) compensatory damages.
• D) breach damages.
• E) standardized damages.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate years.

Telephone Bill

A periodic charge for the use of telephone services, often including the cost of calls, subscription fees, and taxes.

Accounts Payable

Money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its life up to a specific date.