Which of the Following Is a Contract with a Condition

question 7

Multiple Choice

Which of the following is a contract with a condition subsequent?

• A) Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank.
• B) Roger bought a VCR but he may return the VCR within ten days and get all of his money back.
• C) Both (a) and (b) are examples of a condition subsequent.
• D) Neither (a) nor (b) is an example of a condition subsequent.

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units they represent.

Equivalent Units

A concept in cost accounting used to apportion costs to partially completed goods, expressed in terms of fully completed units.

Direct Labor

The payment for labor of employees directly involved in the generation of goods or the provision of services.

Equivalent Units

A concept used in cost accounting to convert the amount of work done on partially complete goods into a number of fully complete units.