Consequential Damages Are Awarded for Damage Caused by Special Circumstances

question 21

True/False

Consequential damages are awarded for damage caused by special circumstances beyond a contract itself.

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Definitions:

Operating Income

The profit earned from a firm's regular core business operations, excluding deductions of interest and tax.

Operating Expenses

Costs incurred in the normal operations of a business, such as salaries, utilities, and rent, exclusive of cost of goods sold.

Revenue Recognition

Revenue Recognition is the accounting principle that dictates the specific conditions under which income becomes recognized as revenue.