Ordinarily, Substantial Performance by One Party to a Contract Will

question 15

Multiple Choice

Ordinarily, substantial performance by one party to a contract will obligate the other parties __________.

• A) to perform their obligations under the contract
• B) not to perform their obligations under the contract
• C) to void the contract
• D) to invalidate the contract

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Definitions:

Accounting Period

The span of time at the end of which a company calculates its financial performance, typically a quarter or year.

Journalized

The act of recording a transaction in an accounting journal, documenting the financial activities of a business.

Retained Earnings

Represents the portion of net income that is retained by the company rather than being distributed to its owners or shareholders.

Utilities Expense

An expense incurred by a business for basic utilities, such as electricity, gas, and water, which are necessary for operations.