It Is Said That 'Time Is of Essence' When

question 33

Multiple Choice

It is said that 'time is of essence' when:

• A) the promisor refuses to fulfill the promised act in time.
• B) the delay in time taken to fulfill the act results in financial loss to the promisor.
• C) the promisee refuses to owe the promisor the value of the assignment.
• D) an event terminates an existing duty of performance.
• E) the promisee is affected by whether the promisor acts on time or not.

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Definitions:

Effective Tax Rate

The average percentage of their total income that individuals or corporations pay in taxes.

Profit/(Loss) Realized

The actual gain or loss generated from completing a transaction.

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.