If There Is a Conflict Between the Express Terms of the Contract

question 6

Multiple Choice

If there is a conflict between the express terms of the contract and trade usage,_____.

• A) the trade usage prevails
• B) the express terms prevail
• C) neither will prevail over the other
• D) implied terms prevail

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Definitions:

Assets

Economic resources controlled by a business from which future economic benefits are expected to flow to the business.

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of premiums and the provisions of coverage.

Adjusting Entries

Journal entries made at the end of an accounting period to update certain accounts and ensure they reflect the true financial position of a company.