Quasi-Contractual Liability Will Generally Be Imposed When the Cost of Performing

question 48

True/False

Quasi-contractual liability will generally be imposed when the cost of performing a contract is greater than had been expected.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Fiscal Year

A twelve-month period used for accounting purposes and financial reporting by businesses, which may not align with the calendar year.