Rectification Is

question 40

Multiple Choice

Rectification is

• A)an order indicating a major breach of contract occurred and the contract is void
• B)a letter from one party to the contract to the other party stating that there is a mistake in the contract
• C)a Court order which corrects a written document to reflect accurately the contract made by the parties
• D)a judgment made by the Court granting damages to an innocent party
• E)a letter from the Court which states that there is a mistake in the contract

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset that evenly spreads the cost over its useful life.

Bond Interest Expense

The cost associated with the interest payments on an issuer's bonds payable.

Straight-Line Method

A method of calculating depreciation of an asset that allocates an equal portion of the asset's cost to each year of its useful life.

Discount on Bonds Payable

The difference when bonds are issued for less than their face value.