Veggie Grocers Orders by Phone Twenty Cartons of Canned Beets

question 59

Multiple Choice

Veggie Grocers orders by phone twenty cartons of canned beets from Capital Food Packers,Inc.After ten cartons are delivered and accepted,Veggie repudiates the contract.Capital can enforce the contract to

• A)any extent because the order was placed orally.
• B)no extent because the order was placed orally.
• C)the extent of the ten accepted cartons.
• D)the extent of the twenty ordered cartons.

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Definitions:

Interest-Bearing Note

A debt instrument that requires the borrower to pay not only the principal amount but also periodic interest payments.

Adjusting Entries

Entries made in journal accounts at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Annual Accounting Period

The 12-month period a company uses for accounting purposes to report its financial performance.

Prepaid Rent

The payment made for rent before it's due, recorded as an asset on the balance sheet until it's recognized as an expense in the period to which it relates.