The Principle of Substantial Performance Can Best Be Described as

question 121

Multiple Choice

The principle of substantial performance can best be described as

• A) minor terms of the contract are disregarded.
• B) only exact compliance with the contract will qualify as performance.
• C) a major term of the contract is mostly fulfilled.
• D) all or most of contractual obligations are fulfilled.
• E) minor terms of the contract are yet to be fulfilled.

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Definitions:

Net Cash

The amount of cash that is remaining after all cash inflows and outflows have been accounted for, over a specific period.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for.