Which of the Following Is True of Oral Contract Payments

question 19

Multiple Choice

Which of the following is true of oral contract payments?

• A) In the case of part payment, an oral contract may be enforced for goods, for which payment has not been made and accepted.
• B) An oral contract can be enforced if the buyer has made full payment on the contract.
• C) Under the law of commercial paper, a check, or draft is an unconditional payment when delivered.
• D) A check or promissory note tendered as payment, but refused by the seller, constitutes as an oral contract payment.

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Definitions:

Productive Assets

Assets that are used in the operations of a business to generate revenue, including machinery, buildings, and equipment.

Operating Activities

Business activities and transactions related to the primary operations of a company, including cash inflows and outflows.

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board for financial reporting.

Financing Cash Flow

Cash flow related to the financing activities of a business, including issuing or buying back shares, debt issuance, and payment of dividends.