Which of the Following Is a Statement of Facts to Which

question 128

Multiple Choice

Which of the following is a statement of facts to which the Sale of Goods Act would apply?

• A) "There's a small dead insect in my soup!"
• B) "We hired you as a bartender, not to join the guests and teach them Texas line dancing!"
• C) "I paid you to tune the car, but it obviously wasn't done!"
• D) "Pursuant to the contract, the buyer of the house tendered $50,000 on the closing date, but the seller had changed his mind."
• E) "The deal was this: Fred was to assign to Paul Fred's accounts receivable, and Paul would pay him $5000 cash, but Fred did not honour his promise."

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Definitions:

Notes Receivable

Claims for which formal agreements of credit are made between borrowers and lenders, often involving interest.

Journal Entry

A record that captures all the financial transactions of a business, displaying debits and credits in the accounting system.

Aging Method

An accounting technique used to estimate the amount of a company's bad debts based on the age of its receivables.

Bad Debts Expense

The cost recognized by businesses for uncollectible accounts receivable due to customer defaults.