Veggie Grocers Orders by Phone Twenty Cartons of Canned Beets

question 13

Multiple Choice

Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers,Inc.After ten cartons are delivered and accepted,Veggie repudiates the contract.Organic can enforce the contract to

• A)any extent because the order was placed orally.
• B)no extent because the order was placed orally.
• C)the extent of the ten accepted cartons.
• D)the extent of the twenty ordered cartons.

---

Definitions:

Present Value

The contemporary valuation of a future quantity of money or cash flow series, assuming a specific interest rate.

Annuity Due

A type of annuity payment where the payment is due at the beginning of each period, rather than at the end.

Expected Cash Flows

The projected amounts of money to be received or paid out by a business within a specified period.

FASB Concepts

Theoretical principles and frameworks established by the Financial Accounting Standards Board to guide the development of accounting standards.