Which of the Following Will Not Allow for an Anticipatory

question 79

Multiple Choice

Which of the following will not allow for an anticipatory repudiation to occur?

• A) Tom calls Dick and says that he can't find the raw materials to complete performance and doubts he can meet the contract's performance deadline
• B) Sally is buying Jane's car with the money and car to be exchanged in a week, however, Sally sees Betty who tells her she just bought Jane's car
• C) Mary Beth is scheduled for knee surgery next month with Dr. Slice but reads in the paper that Dr. Slice has lost his license to practice medicine
• D) Manny calls Moe and tells him that the sculpture he's creating for him is coming along slower than anticipated but he's pretty sure he'll be done by the contract deadline

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Definitions:

Expenses

Costs incurred by a business in the process of earning revenues.

Revenue Recognition Principle

The concept that supports recording revenues when services have been performed or products delivered to customers.

Cash

Money in the form of coins or banknotes held by an individual or organization, readily available for transactions.

Adjusting Entries

Bookkeeping entries executed at the termination of a financial period for the purpose of apportioning earnings and expenses to the actual period they took place.