Substantial Performance Occurs ________

question 14

Multiple Choice

Substantial performance occurs ________

• A) when most of the material elements of a contract are satisfied
• B) when all the material elements of a contract are satisfied, even if some nonmaterial requirements may not be satisfied
• C) when there is complete and perfect performance
• D) when the goods are accepted by the buyer/lessee
• E) once the seller/lessor starts to perform

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Definitions:

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement.

Direct Method

The Direct Method in accounting is a way to present the cash flow statement, showing actual cash receipts and payments, directly reporting major classes of gross cash receipts and payments.

Accrual Accounts

Accounts that record revenues and expenses when they are earned or incurred, not necessarily when cash is received or paid.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.