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:

Adjusting Entries

Accounting records prepared at the close of a fiscal period to distribute profits and costs to the period they genuinely took place.

Accrued Revenues

Revenues earned by a company for services or goods provided but not yet received or billed to the client.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Adjustments

Entries made in accounting records to correct or update financial information.