A Court Is Likely to Order Specific Performance When

question 65

Multiple Choice

A court is likely to order specific performance when .

• A) it rules that the plaintiff should be in the same position as it was in before entering into the contract
• B) the plaintiff seeks a correction in the terms of the agreement
• C) the dollar damages are insufficient compensation for the breach of contract
• D) it wishes to prevent a person from performing a particular action

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Definitions:

Income Recognition

The accounting principle that revenue should only be recognized after the business has fulfilled its obligations and the payment is certain.

Direct Method

A method for creating a cash flow statement where actual cash flow information from operations is used rather than adjustments to net income.

Operating Cash Receipts

Cash received by a company from its core business operations.

Cash Flow

Indicates the total amount of money being transferred into and out of a business, particularly affecting its liquidity.