Loren and Izra's Contract Is in Dispute

question 65

Multiple Choice

Loren and Izra's contract is in dispute. Loren makes an offer to accept less money than the parties agreed on and Izra pays the new amount. Loren and Izra have completed a(n) ________.

• A) satisfactory past consideration contract
• B) detrimental reliance contract
• C) accord and satisfaction
• D) compliance agreement
• E) acknowledged change order

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Definitions:

Plant Assets

Durable physical assets employed in the running of a business, designed for long-term use and not for being sold off.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the company's financial statements.

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded at the statement date, common in service-related transactions.

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate revenues and expenditures to the period in which they actually occurred.