Poole Contractors Makes a Contract with Delta Resources to Pay

question 56

Multiple Choice

Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply of 500 truckloads of sand within a week. Delta Resources delivers the sand two days after the contract was made, and Poole Contractors pays it $50,000 promised in the contract. This is an instance of ________.

• A) substantial performance
• B) material breach
• C) minor breach
• D) strict performance

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Definitions:

Net Change in Cash

The total increase or decrease in a company's cash and cash equivalents over a specified period, reflecting cash inflows and outflows.

Conversion of Bonds

The process of exchanging bond securities for a predetermined number of shares of the issuing company's stock.

Financing Section

Part of a cash flow statement that shows the net flows of cash used to fund the company's financial activities, including debt, equity, and dividends.

Common Stock

Equity ownership in a corporation, entitling holders to vote on company matters and receive dividends.