_____ Comes into Play When Circumstances Make the Value of One

question 44

Multiple Choice

_____ comes into play when circumstances make the value of one party's performance virtually worthless to the other.

• A) Impossibility
• B) Impracticability
• C) Frustration of purpose
• D) Termination
• E) Cancellation

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Definitions:

Deposits In Transit

Refers to money that has been received and recorded by a business but has not yet been recognized by the bank by the end of the accounting period.

Outstanding Checks

Checks that have been written and recorded in a company's financial records but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

NSF Check

A check that has been declined by a bank due to insufficient funds in the account it was drawn on.