Which of the Following Occurs When Parties Agree That They

question 57

Multiple Choice

Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and,therefore,rescind or cancel the contract?

• A)Accord and satisfaction
• B)Novation
• C)Substituted contract
• D)Mutual rescission
• E)Accord and abeyance

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Definitions:

Indirect Method

A way of calculating cash flows for the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for non-cash transactions, deferrals, and accruals to calculate cash flow from operating activities.

Net Income

The final amount a company retains after expenses and taxes have been removed from its overall revenue.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's products or services.