What Is the Most Likely Outcome When an Assignment Is

question 71

Multiple Choice

What is the most likely outcome when an assignment is made in violation of an antiassignment clause?

• A)The court will refer to the statute of frauds to determine the effectiveness of the assignment.
• B)The court will always prohibit assignment.
• C)The court will never prohibit assignment.
• D)The court will allow assignment always unless it is against public policy.
• E)The court will treat the assignment as a breach of contract.

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Definitions:

Intra-Entity Inventory Transfers

Transactions involving the transfer of inventory between departments or units within the same company.

Consolidation Worksheet

An instrument utilized for compiling consolidated financial reports, which facilitates the integration of financial data from a parent company and its subsidiary entities.

Consolidated Statement

Financial reports that combine the accounting information of a parent company with its subsidiaries to present as a single entity.

Cash Flows

Cash flows refer to the net amount of cash and cash equivalents being transferred into and out of a business.