The Goods Required for the Performance of a Contract Are

question 20

Multiple Choice

The goods required for the performance of a contract are destroyed without fault of either party prior to the time that the risk of loss passed to the buyer.In this case,

• A)the contract cannot be cancelled.
• B)the contract is voided.
• C)the seller will not be excused.
• D)the seller has to make good for the loss.

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Definitions:

Capitalizing

The accounting practice of recognizing a cost as a long-term asset rather than an expense.

Amortizing

The process of gradually paying off a debt over a predetermined period of time through regular payments.

Unrestricted Contribution

Donations or funds given to an organization without any conditions or limitations on their use.

Unrestricted Resources

Funds or resources received by an organization that are not subject to stipulations on their use by donors, allowing for flexibility in allocation.