A Change of Law Discharges a Contract If the New

question 28

Multiple Choice

A change of law discharges a contract if the new law:

• A) requires a license and none was required before.
• B) requires the use of fireproof materials.
• C) requires the use of antipollution devices.
• D) prohibits the act called for by the contract.

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers in two columns, debits and credits, ensuring that total debits equal total credits.

Debit Balances

Accounts with a balance that represents amounts owed or expenses; typically assets and expenses accounts.

Financial Statement Order

The sequence in which financial statements are prepared and presented, typically starting with the income statement, followed by the statement of financial position, and so on.

Financial Ratios

Quantitative measures derived from financial statement analysis to evaluate the financial health of a company.