Which of the Following Statements Is TRUE

question 7

Multiple Choice

Which of the following statements is TRUE?

• A)The doctrine of frustration applies only if the circumstances have changed so that performance, as originally intended, has become absolutely impossible.
• B)Because of its effect upon the parties, bankruptcy always leads to frustration of a contract.
• C)The doctrine of waiver may apply in connection with a condition, but not a warranty or an innominate term.
• D)Bankruptcy always discharges a person from performing a contractual obligation.
• E)Limitation periods exist, in part, because it is undesirable for courts to rely upon evidence that is old and perhaps unreliable.

Understand the timing of expense recognition related to employee benefits.

Identify and explain the nature of installment notes and the computation of interest.

Understand the principles of matching revenues with expenses, especially in the context of warranty costs and fringe benefits.

Know the components of payroll taxes and the recording of payroll expenses.

---

Definitions:

Real Estate Mortgage

A legal agreement where real property is used as collateral for a loan, granting the lender a security interest in the property.

Federal Consumer Credit Protection Act

A U.S. federal legislation designed to ensure fair and transparent practices in the credit industry, protecting consumers from unfair lending and billing practices.

Solicited In Home

Refers to sales, services, or promotional activities targeted at individuals directly within their residences, often by prior arrangement.

Fair Debt Collection Practices Act

A US federal law designed to eliminate abusive, deceptive, and unfair debt collection practices by debt collectors.