Fact Pattern 15-1 Restore Construction Company Enters into a Contract

question 34

Multiple Choice

Fact Pattern 15-1 Restore Construction Company enters into a contract with Sam to remodel Tess's Home Store, using products from United Building Supplies.
Refer to Fact Pattern 15-1. United will realize a profit from the sale of products to Restore to remodel Tess's store. United is

• A) a delegatee.
• B) an assignee.
• C) an incidental beneficiary.
• D) an intended beneficiary.

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Definitions:

Exchange Rates

The rate for transforming one currency into another.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period of time.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually used in its financial reporting.

Sales

The total receipts a company generates from selling its goods or services over a certain period of time; also often referred to as revenue.