Fact Pattern 16-1 (Questions 7–8 Apply)

question 72

Multiple Choice

Fact Pattern 16-1 (Questions 7–8 apply)
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development.

-Refer to Fact Pattern 16-1.If Estelle breaches the contract,Desmond's remedy would most likely be

• A)a certain ratio of the amount that Estelle has in liquid funds.
• B)a percentage of Estelle's unrealized profit.
• C)the difference between the land's contract and market prices.
• D)specific performance.

---

Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure accuracy and consistency in the accounts.

Adjusted Balance

Represents the account balance after adjustments such as payments, credits, and interest have been factored in.

Journalize

Journalize refers to the process of recording financial transactions in the journal of an accounting system, which includes detailing debits and credits for each transaction.

Control Procedures

Activities and policies designed to ensure the accuracy, completeness, and reliability of a company's financial reporting.