Al Sells Gravel to Bob on Credit, and Bob Sells

question 100

Multiple Choice

Al sells gravel to Bob on credit, and Bob sells it to Chuck, an innocent purchaser. Then Bob runs away with the money, without paying Al. Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

• A) Al
• B) Bob
• C) Chuck
• D) Al and Bob
• E) Bob and Chuck

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Definitions:

Bonds

Fixed-income investments representing loans to borrowers such as corporations or governments, paid back with interest over time.

Interest Accrual

The process of recognizing interest expense or interest income that has been earned but not yet paid or received.

Earnings Per Share

A company's net profit divided by the number of its common shares outstanding, indicating the profitability on a per-share basis.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.