Which of the Following Led the Court to Decide Upon

question 20

Multiple Choice

Which of the following led the court to decide upon its judgment in the Wilson Floors Co. v. Scotia Park, Ltd., and Unit, Inc. case?

• A) The project Unit fell behind in making payments to Wilson for its completed work in the spring of 1973.
• B) The bank had induced Wilson to remain on the job and rely on its credit for future payments.
• C) Foreclosing on the mortgage and hiring a new contractor would have resulted in higher costs.
• D) The bank had no contractual duty to Wilson despite its oral guarantee according to the Statute of Frauds.
• E) The bank representative had merely advised the subcontractors that adequate funds would be available to complete the job.

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Definitions:

Income Statement

A financial report that calculates a company's performance over a specific period, summarizing revenue, expenses, and profits.

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they contribute to the generation of revenue.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, indicating its financial performance.

Incurred

Refers to costs or expenses that have been recognized or acquired, usually due to a company's operations or activities.