Drew Contracts for a Sale of Tools to Engineering Company

question 58

Multiple Choice

Drew contracts for a sale of tools to Engineering Company (EC) .If the tools fail to conform to the contract,EC

• A)may accept or reject the shipment in part or in whole.
• B)must accept the shipment.
• C)must reject the shipment.
• D)must renegotiate the contract.

---

Definitions:

Subsidiary

A company controlled by a parent company.

Accounting Method

A set of rules and procedures used to determine when and how income and expenses are recognized and recorded in a company's financial statements.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Post-merger Firm

Describes a company that has emerged after the completion of a merger, incorporating elements and assets from all original entities involved in the merger.