James and Kay Enter into a Contract for the Sale

question 56

Multiple Choice

James and Kay enter into a contract for the sale of a bicycle,but Kay later refuses to deliver the goods. James asks a court to order Kay to perform as promised. Ordering a party to perform what was promised is

• A)an equitable remedy.
• B)an unenforceable demand.
• C)an action.
• D)beyond the court's authority.

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Definitions:

Historic Rate

The exchange rate at which a transaction was executed in the past, used for recording foreign currency transactions in financial statements.

Non-Free-Standing Subsidiaries

Entities that are significantly controlled or wholly owned by another firm but lack the independent structure or operations typically associated with subsidiary companies.

Held-to-Maturity Debt Securities

Financial instruments such as bonds that a company intends and is able to hold until they mature, rather than trading them.

Amortized Cost Basis

An accounting method that gradually reduces the cost value of a tangible or intangible asset through periodic amortization charges.