A Contract Will Be Discharged If Supervening Circumstances Make It

question 25

True/False

A contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when they made the contract.

Recognize the journal entry recording of bond and stock investments, including the handling of accrued interest and dividends.

Identify and understand different types of investments (equity vs. debt securities).

Understand the concepts of parent and subsidiary companies.

Grasp the equity method and fair value method of accounting for investments.

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Definitions:

Total Capital

The sum of a company's equity, debt, and any other long-term financing.

Admission by Investment

The process of becoming a partner or member in a company or partnership through a financial investment.

Capital Balance

The amount of money in a company's equity account, not including profits or losses.

Interest

The fee paid for borrowing money, typically expressed as an annual percentage of the principal.