William Enters into an Agreement with Phyllis to Advance $300

question 80

Multiple Choice

William enters into an agreement with Phyllis to advance $300 000 to Phyllis for the purchase of garage equipment.Phyllis agrees to give William a mortgage over her home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Phyllis' home of at least $350 000.The appraisal provision is known as:

• A)an implied term.
• B)a warranty.
• C)a condition term.
• D)a condition precedent.
• E)a condition subsequent.

Calculate and understand financial ratios such as price-earnings ratio, return on stockholders' equity, and return on total assets.

Identify what constitutes an unusual item on an income statement and the implications of various unusual items.

Understand the presentation of other comprehensive income and the components of a corporate annual report.

Match financial ratios to their appropriate uses, demonstrating an understanding of liquidity, solvency, profitability, and efficiency analysis.

---

Definitions:

Water Table

The depth beneath the surface where the soil is completely filled with water.

Cave Roof

The upper surface or ceiling of a cave, formed by natural geological processes.

Sinkhole

A depression or hole in the ground caused by the collapse of a surface layer, often resulting from the dissolution of limestone by water.

Caldera

A large crater formed by a volcanic eruption, resulting from the collapse of land following the emptying of the volcano's magma chamber.