Tyron Purchased a Vacant Lot and Entered into a Contract

question 41

Multiple Choice

Tyron purchased a vacant lot and entered into a contract with BZ Inc.to construct a shopping center on the site.Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center.Tyron was unable to raise the necessary capital and was unable to perform the contract with BZ,Inc.Douglas sued Tyron for breach of contract as a third party beneficiary.Douglas will probably

• A)win as a third party creditor beneficiary.
• B)win as a third party donee beneficiary.
• C)lose as a third party incidental beneficiary.
• D)lose as a third party creditor beneficiary.

Comprehend the effects of transactions on asset and liability accounts and their impact on company financial statements.

Recognize the components and importance of source documents in the accounting process.

Understand the structure and purpose of key financial statements: the income statement, balance sheet, and trial balance.

Identify the role and characteristics of specific accounts in the accounting cycle, including equity, revenue, and expense accounts.

---

Definitions:

Physical Location

Refers to the actual, geographical place where a business or property is situated.

Designated Market Maker

A market participant tasked with maintaining fair and orderly markets for specified securities by facilitating trade execution.

Exchange Floor

The physical location where traders buy and sell securities or commodities within a financial exchange.

Orderly Market

A market condition in which prices move in a smooth and predictable manner, without excessive volatility or gaps in trading prices.