Which of the Following Statements Is NOT TRUE Regarding the Buyer's

question 30

Multiple Choice

Which of the following statements is NOT TRUE regarding the buyer's right to cover?

• A)The buyer must cover.
• B)The measure of damages in a cover is the difference between the cover price and the contract price.
• C)Cover must be done by reasonably obtaining substitute goods.
• D)Consequential damages can be recovered in addition to the cover damages.

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Definitions:

MACRS Depreciation

A method of accelerated depreciation allowed by the IRS for tax purposes, applicable to tangible assets over their useful lives.

Percentage-Of-Completion Method

An accounting method that recognizes revenue and expenses of long-term contracts as a percentage of work completed during the period.

Completed-Contract Method

This is an accounting method that recognizes revenues and expenses from a long-term contract only when the contract is completed.

Deferred Tax Liability

A tax obligation that is recorded on the balance sheet but not yet due, arising from temporary differences between the accounting and tax treatment of transactions.