Which of the Following Statements Is True If Substantial Performance

question 98

Multiple Choice

Which of the following statements is true if substantial performance is proved?

• A) The plaintiff must pay the defendant as agreed to in the contract.
• B) The plaintiff cannot refuse to pay the defendant.
• C) The plaintiff is entitled to recover the original price that had been agreed upon before the defendant performed.
• D) The plaintiff is entitled to recover the new price found by taking the median between the plaintiff's demand for recovery and the defendant's claim of the amount of recovery.

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Definitions:

Closing Entries

These are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing how net income is derived from business operations.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to prepare financial statements.

End-of-period Spreadsheet

A tool used for adjusting and closing entries and for preparing financial statements at the end of an accounting period.