On June 1,Supertread Tire Company Entered into a Contract to Provide

question 19

Multiple Choice

On June 1,Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years.The October shipment consisted of 100 badly defective tires.ZYX Cycle Company:

• A)can treat the whole contract as breached.
• B)can reject the October shipment if it cannot be cured in a timely manner by Supertread.
• C)cannot reject the October shipment since it is part of the installment series.
• D)Answers (a) and (b) are acceptable under the UCC.

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Definitions:

Dividends Payable

A liability on a company's balance sheet that indicates the amount of dividends it owes to shareholders, to be paid out in the future.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Generally speaking, activities that affect current assets, current liabilities, or net income.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.