Under the UCC, a Contract or Contract Provision Is Said

question 22

Multiple Choice

Under the UCC, a contract or contract provision is said to be _______________ if it is so unfair that a court would be unreasonable if it enforced the contract.

• A) Unconscionable
• B) Unreasonable
• C) Voidable
• D) Viable
• E) Ancillary

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Definitions:

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they are incurred to generate revenues, matching expenses against revenues in the period in which the revenue was earned.

Specific Identification

A method of inventory valuation that identifies and assigns cost to individual inventory items, suitable for unique or expensive products.

Lowest Cost of Goods Sold

The minimum expenses incurred in the direct creation of goods available for sale, often achieved through efficient production techniques or cost-cutting measures.

Current Cost

The cost that would be incurred to replace an asset or to purchase a service at the present time, as opposed to its historical cost.