A Note Receivable Due in Five Years Is Listed on the Balance

question 15

Multiple Choice

A note receivable due in five years is listed on the balance sheet under the caption:

• A) investments.
• B) current assets.
• C) fixed assets.
• D) stockholders' equity.

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Definitions:

Specific Performance

A legal remedy in contracts where the court orders the party who breached the contract to perform the promised action rather than simply paying damages.

Liquidated Damages

Predetermined monetary compensation agreed upon by parties in a contract as a remedy for specific breaches, especially delays.

Penalty Clause

A provision in a contract that specifies a penalty to be paid by a party in the case of a breach of the contract.

Liquidated Damages

A predetermined sum agreed upon in a contract, payable as compensation for failure to perform specific acts or to fulfill certain conditions.