Abe and Gabriel Entered into a Contract for Abe to Furnish

question 23

Multiple Choice

Abe and Gabriel entered into a contract for Abe to furnish landscaping services for Gabriel's office complex.The contract provides the fee will be $75 per month.At the time Gabriel signs the agreement,the two discuss the fact that the services required in the winter will be less and the fee will be reduced to $50 per month.Abe adds as Gabriel is signing,"I just forgot to put that sliding scale in this contract.Don't worry - I'll take care of it because we understand each other." Gabriel:

• A)will be permitted to introduce evidence about the winter fee reduction.
• B)will only need to pay $50 during the winter months.
• C)will pay $75 per month every month because of parol evidence.
• D)none of the above

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Definitions:

Adjusted Cash Balance

The cash amount shown in the accounting records after adjustments have been made for checks, deposits in transit, and other items.

May Bank Reconciliation

A process undertaken to verify the accuracy of financial records by comparing the May bank statement with the company's internal records.

Deposits in Transit

Funds that have been recorded by a company but not yet by its bank, typically due to timing differences.

Bank Reconciliation

The process of comparing and adjusting a company's book balance of an account with the balance reported by a bank to find any possible discrepancies.