A Contract Provision Stating That One of the Parties Shall

question 52

Multiple Choice

A contract provision stating that one of the parties shall not be liable for damages in case of a breach is called a(n) __________ clause.

• A) liquidated damages
• B) exculpatory
• C) waiver.
• D) due process

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Definitions:

Financing Activities

Transactions with creditors or investors used to fund either company operations or expansions.

Investing Activities

Refers to the purchasing and selling of long-term assets and other investments, not including cash equivalents, which are reported in a company's cash flow statement.

Indirect Method

A cash flow statement approach that adjusts net income for the effects of non-cash transactions and changes in working capital to calculate cash from operating activities.

Accumulated Depreciation

The cumulative total of depreciation costs noted for an asset since it was acquired.