Use the Following Information as of December 31 to Determine

question 275

Multiple Choice

Use the following information as of December 31 to determine equity.
Accounts Payable………………………… $ 800
Accounts Receivable……………………. 700
Cash……………………………………… 2,300
Wages Expense………………………… 9,000
Wages Payable……………………… 1,200

• A)$1,000
• B)$3,000
• C)$5,000
• D)$10,000
• E)$11,000

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Definitions:

Common Law

A body of unwritten laws based on legal precedents established by the courts, contrasting with statutory law.

Doctrine of Substantial Performance

A legal principle that allows a contracting party to enforce the contract even if there are minor breaches, provided substantial performance of the contract has been achieved.

Perfect Tender Rule

A principle in the Uniform Commercial Code allowing a buyer to demand a full compliance with the contract terms for goods.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, designed to standardize and simplify the laws across the states.