Fact Pattern 17-A2

question 24

Multiple Choice

Fact Pattern 17-A2
Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples.
-Refer to Fact Pattern 17-A2. Through no fault of Eve's Garden, a fire de?stroys the apples before they are delivered. This circumstance

• A) breaches the contract.
• B) discharges the contract.
• C) has no effect on the contract.
• D) suspends the contract.

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Definitions:

Adjusting Journal Entries

Adjusting Journal Entries are made in an accounting system to adjust income and expense accounts so that they reflect the correct values for the accounting period.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.

Cancelled Cheques

Cheques that have been processed by the bank, serving as proof that a payment was made.

Segregation of Duties

A risk management practice that divides responsibilities among different individuals or teams to reduce the risk of error or fraud.