According to Statement of Financial Accounting Concepts No

question 40

Short Answer

According to Statement of Financial Accounting Concepts No.2, verifiability is an ingredient of the primary quality of $$\begin{array} { l c c } &\text { Relevance } & \text { Reliability }\\\text { a. } & \text { Yes } & \text { No } \\\text { b. } & \text { Yes } & \text { Yes } \\\text { c. } & \text { No } & \text { No } \\\text { d. } & \text { No } & \text { Yes }\end{array}$$

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Definitions:

Sales Contracts

Agreements between two parties where the seller agrees to deliver a product or service to a buyer for a specified price.

Remedies

The means by which a right is enforced or the violation of a right is compensated or prevented, often through legal action.

Breach

A breach is the violation or breaking of a law, obligation, or agreement, which can result in a legal dispute or action.

Nonconforming Goods

Products delivered under a contract that fail to meet the specifications or quality standards agreed upon.