Which of the Following Is the Test Used to Distinguish

question 35

Multiple Choice

Which of the following is the test used to distinguish between a contract for the sale of goods and a contract for work and materials?

• A)If the main part of the contract is the skill and experience of one of the parties and the transfer of goods is of secondary importance,it is a contract for the sale of goods.
• B)If the contract involves the transfer of ownership of goods,it must be a contract for the sale of goods.
• C)If the contract involves the provision of services,it cannot be a contract for the sale of goods.
• D)If the main part of the contract is the skill and experience of one of the parties and the transfer of goods is of secondary importance,it is not a contract for the sale of goods.

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Definitions:

Stockholder Dividends

Profit payouts made by a company to its investors.

Accounting Equation

The foundational equation in accounting stating that Assets = Liabilities + Equity, ensuring balance in a company's financial statements.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Account Type

A classification used in accounting to differentiate various types of financial records, such as assets, liabilities, equity, revenues, and expenses.