Paul, a Contractor, Has a Contract to Build a New

question 25

Multiple Choice

Paul, a contractor, has a contract to build a new office building for Bill. The contract contains a provision requiring Paul to furnish a certificate of occupancy from the building inspector before Bill is required to pay. This provision is:

• A) an express condition.
• B) an implied-in-fact condition.
• C) an implied-in-law condition.
• D) a condition subsequent.

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Definitions:

Payroll

The total amount of wages, salaries, and other earnings that a company pays to its employees.

Workweek

A fixed, standard period used for labor scheduling and payroll, commonly defined as a set number of hours or days that an employee works.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Interest Expense

The cost incurred by an entity for borrowed funds, denoted as an expense within the income statement.