Consuelo and Gabriela Enter into a Contract for a Sale

question 13

Multiple Choice

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

• A)any profit lost minus any loss avoided.
• B)whatever amount the seller wishes to claim.
• C)the purchase price plus incidental damages.
• D)the market price at the place at which the seller delivered the goods.

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, often used to assess the efficiency of inventory management.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its customers after a sale has been made.

Accounts Payable Period

The average number of days it takes for a business to pay off its trade creditors.

Credit

Refers to the trust allowing one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.