A Contract in Which One Party Agrees to Purchase Goods

question 38

Multiple Choice

A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to:

• A) be illegal.
• B) result from undue influence.
• C) contain a waiver.
• D) contain a conditional promise.

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Definitions:

Revenue Account

An account that tracks the income generated from the sale of goods or services before any expenses are subtracted.

Asset Account

An account on a company's balance sheet that represents tangible or intangible items of value owned by the company.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left in an accounting entry.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account, reflecting the opposite of a debit.