The Doctrine That Permits a Party to Suspend Its Performance

question 43

Multiple Choice

The doctrine that permits a party to suspend its performance under a contract when the other party repudiates the contract is known as:

• A)anticipatory repudiation.
• B)revocation.
• C)voidance.
• D)breach.

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Definitions:

Unearned Service Revenue

Income received by a company for services yet to be provided, recorded as a liability until the services are performed.

Financial Statement

Reports outlining the financial standing of a business, incorporating the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Classification of accounts where permanent accounts (real accounts) represent ongoing items that are not closed at the end of the accounting period, whereas temporary accounts (nominal accounts) are closed.