Which of the Following Is a Basic Obligation or Right

question 47

Multiple Choice

Which of the following is a basic obligation or right of the buyer and seller concerning the payment for goods?

• A) The price of the goods must be paid in cash.
• B) If there is no agreement for extending credit to the buyer, the buyer must pay for the goods on delivery.
• C) If all or part of the price of goods is payable in real property, then both the transfer of goods and real property are covered by the law of sales of goods.
• D) The buyer has the right to inspect the goods before payment under all circumstances.

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Definitions:

Cash Flows

The entire amount of currency transactions flowing into and out of a venture, essentially affecting its cash flow status.

Payback Calculation

A financial analysis method used to determine the time required to recoup the cost of an investment, based on the cash inflows from the investment.

Time Value

Time value refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

A medium of exchange used to facilitate transactions for goods and services.