If a Contractually-Specified Mode of Transportation Is Not Available, The

question 26

Multiple Choice

If a contractually-specified mode of transportation is not available, the:

• A) contract is automatically voided.
• B) seller must make delivery by a commercially-reasonable substitute.
• C) buyer must arrange to pick up the goods.
• D) seller must make personal delivery.

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Definitions:

Prior-Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in previously issued financial statements from prior periods.

Trade Receivables

The amounts owed to the business by customers for products or services that have been delivered or used but not yet paid for.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Aging of Accounts

A method used to estimate uncollectable debts by categorizing accounts receivables based on how long they have been outstanding.