When a Contracting Party Refuses to Complete the Contract Before

question 81

Multiple Choice

When a contracting party refuses to complete the contract before the actual time of performance,it is called a(n) ________.

• A)preemptive strike
• B)anticipatory repudiation
• C)ante-breach
• D)advance renunciation
• E)executory renunciation

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Definitions:

Debit/Credit

Accounting terms where a debit increases asset or expense accounts, and decreases liability, revenue or equity accounts; a credit does the opposite.

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid.

Nominal Interest Rate

The stated interest rate of an investment or loan without accounting for inflation or compounding interest effects.