Which of the Following Are Types of Conditional Contracts

question 44

Multiple Choice

Which of the following are types of conditional contracts?

• A) Sale-on-approval contracts, but not sale-or-return or condition-or-sale contracts
• B) Sale-or-return contracts and condition-or-sale contracts, but not sale-on-approval contracts
• C) Condition-or-sale contracts and sale-on-approval contracts, but not sale-or-return contracts
• D) Sale-on-approval contracts, sale-or-return contracts, and condition-or-sale contracts
• E) Sale-on-approval contracts and sale-or-return contracts, but not condition-or-sale contracts

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Definitions:

Equivalent Units

A concept used in cost accounting to represent the amount of work done on incomplete units, expressed in terms of fully completed units.

Work In Process

Items in a manufacturing process that are not yet finished products, including raw materials, labor in progress, and overhead costs.

Work In Process Account

An account that tracks the costs associated with partially completed goods in manufacturing processes.

Process Cost System

An accounting method used to track the costs associated with processes that produce homogeneous products.