Which of the Following Is True Regarding Whether Usage of Trade

question 83

Multiple Choice

Which of the following is true regarding whether usage of trade may impose a remedy in the event of a breach?

• A)Usage of trade may impose an exclusive remedy in the event of a breach only if a contract signed by both parties specifically provides as such.
• B)Usage of trade may impose an exclusive remedy in the event of a breach.
• C)Usage of trade may impose an exclusive remedy in the event of a breach only if both sides are represented by an attorney.
• D)Usage of trade may not impose a remedy in the event of a breach.
• E)Usage of trade may impose a remedy in the event of a breach but it may not impose an exclusive remedy.

---

Definitions:

Perpetual Inventory System

An inventory management method where inventory levels are updated in real time with each sale or purchase transaction.

Gross Method

A method of recording purchases at the gross invoice amount before deducting any cash discounts.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made, used to verify the balance of debits and credits before generating financial statements.

Multiple-Step Income Statement

A detailed financial statement that divides revenue and expenses into separate categories, such as operating and non-operating sections, to highlight different aspects of business performance.