Anna Has a Contract to Perform Accounting Services for Intercend

question 29

Multiple Choice

Anna has a contract to perform accounting services for Intercend Corporation.She breaches her contract in a nonmaterial way.Which of the following is correct with respect to Anna's liability?

• A)Anna is not entitled to any compensation for her services.
• B)Anna may have liability to third party intended beneficiaries.
• C)Anna is entitled to the contractually agreed upon fee less any damages or loss her breach has caused her clients.
• D)Two of the above, (a) and (b) are correct.
• E)Two of the above, (b) and (c) are correct.

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Definitions:

Incremental Cash Flow

The additional cash flow generated by a company from a new project or investment, used for analysis of its viability.

Capital Budgeting Analysis

A process that involves evaluating and comparing the financial impacts of long-term investments to choose the most profitable ones.

Macro-Incremental

This term is not widely recognized as a standard financial or economic term. NO.

Non-Cash Items

Expenses or incomes on a company’s financial statements that do not involve actual cash flow, such as depreciation or amortization.