The United Nations Convention on Contracts for the International Sale

question 103

Multiple Choice

The United Nations Convention on Contracts for the International Sale of Goods (CISG) governs ________.

• A)international business-to-consumer sales contracts
• B)international business-to-business sales contracts
• C)interstate mixed sale contracts
• D)interstate lease contracts
• E)all international sales transactions involving the application of equitable,but not legal,principles

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often appearing as a line item on the income statement.

Notes Payable

Financial obligations or loans evidenced by promissory notes, which the borrower promises to pay back to the lender according to agreed terms.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Liability Reported

The recording of an obligation or debt that a company owes to outside parties in the financial statements.