Which of the Following Is a Contract with a Condition

question 57

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:

Actual Results

The real outcomes or results achieved and recorded after a particular period or activity, often compared against planned or forecasted results.

Standard Cost System

An accounting method that applies estimated costs to product units to predict production expenses and aid in budgeting.

Labor Rate Variance

The discrepancy between what labor actually costs and what was initially budgeted or considered as the standard labor cost.

Actual Results

The real outcomes or data obtained from an operation or process, often compared against planned or forecasted results.