Which of the Following Is True of Discharge of Contracts

question 12

Multiple Choice

Which of the following is true of discharge of contracts?

• A) Both parties to a contract are discharged when they have completely performed their contractual duties.
• B) A contract created by mutual agreement between two parties cannot be discharged by mutual agreement.
• C) A party who has breached a contractual duty may be discharged from liability for breach if the other party brings suit within the statute of limitations.
• D) If a party consents to an alteration, he or she is discharged.

Evaluate a firm's liquidity using current and quick ratios.

Interpret the implications of financial ratios on investment decision-making using fundamental analysis.

Understand the impact of inventory management on a firm's financial performance.

Understand challenges in comparing financial statements across international firms.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, rules, and conventions used in the United States for financial reporting.

Reportable Segments

Distinct parts of a business that are specifically identified for reporting purposes due to their operations’ financial results being regularly reviewed by the company's decision-makers.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period, indicating the efficiency of the company in managing and selling its stock.