Which of the Following Would Strongly Support the Statement Suggesting

question 32

Multiple Choice

Which of the following would strongly support the statement suggesting "the guiding principles for interpreting the terms of a contract are often conflicting"?

• A) The assistance provided by implied terms is sporadic and uncertain.
• B) The parties' intentions are given effect, and a contract as it appears is enforceable.
• C) It is impossible to predict what the parties intended a term to mean.
• D) It is necessary to demonstrate that a term exists based on the balance of probabilities.

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Definitions:

Net income

The profit of a company after all revenues, costs, and expenses have been subtracted, indicating the actual earnings.

Periodic inventory system

An inventory accounting system where updates to inventory levels are made on a periodic basis, rather than each time a sale or purchase occurs.

Physical inventory

The actual counting and recording of merchandise goods and materials held by a business for the purpose of verifying stock levels and value.

End of the period

Refers to the conclusion of an accounting period, at which financial statements are prepared.