Which of the Following Is an Exception to the General

question 41

Multiple Choice

Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?

• A)When the only part of the contract left to be fulfilled is the payment.
• B)When the sale of goods is involved.
• C)When no more than one-half of the contractual duties have been performed.
• D)When no more than three-fourths of the contractual duties have been performed.
• E)When at least one-third of the contractual duties have been performed.

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Definitions:

Sales Returns & Allowances

Sales Returns & Allowances account for the reduction in sales due to products being returned or allowances provided for damaged goods.

Merchandise Inventory

Goods that a business holds for the purpose of selling to customers, often part of the current assets on a company's balance sheet.

Periodic

Occurring or recurring at regular intervals, often used to describe payments, reviews, or assessments.

Freight-In

A cost of goods sold account that records the shipping cost to the buyer.