In Sales Contracts,the Seller Can Exercise the Right to Cure

question 35

Multiple Choice

In sales contracts,the seller can exercise the right to cure even when the original time for delivery has expired,if:

• A) the buyer purchases products regularly from the seller.
• B) the seller agreed to cash on delivery (COD) selling terms.
• C) the buyer accepted the commercial units in the original shipment and rejected the rest.
• D) the seller had some reason to believe the buyer would accept nonconforming goods.

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Definitions:

Adjustments Column

A column in journals or ledgers where adjustments are made to correct or update account balances before the preparation of financial statements.

Unadjusted

Refers to figures or entries that have not been modified to reflect adjustments, corrections, or changes.

Adjusted

Adjusted generally refers to alterations made to financial statements or data to correct for discrepancies or to account for extraordinary events.

Final Trial Balances

Final trial balances are the summary listings of all the ledger accounts right after the closing entries are made at the end of an accounting period, essentially reflecting the balance of every account before the start of a new accounting period.