Options:
- Smith Bus should be excused from performance under the clause for the rights on improper delivery
- Smith Bus should not be excused from performance because it did not act in good faith
- Smith Bus should be excused from performance under the test of commercial impracticability
- Smith Bus can exercise its right of anticipatory repudiation
Answer:
Correct answer is Option c.
<u>Smith Bus should be excused from performance under the test of commercial impracticability
</u>
Explanation:
In this case, Smith cannot fulfil the contract obligation due to an unforeseen event. Hence, Commercial impracticability shall apply.
Answer:
Accounting information helps users make business and financial decisions.
Explanation:
Users of accounting information are divided into :
- Internal users
- External users
Internal users include : owners, managers, employees
External users include : shareholders, tax authority, regulatory bodies
Based on the information contained in the financial information a shareholder can decide if to invest in a company or not to.
Also, mangers can decide to invest in new ventures based on the information on profitability contained in the financial statements.
Answer:
40%
Explanation:
The computation of the return on equity is shown below:
= (Net income - interest expense) ÷ (weightage average of common stockholders' equity)
where,
Weightage average of common stockholders' equity equals to
= (Total common stockholders' equity at the beginning of the year + Total common stockholders' equity at the end of the year) ÷ 2
= ($410,000 + $290,000) ÷ 2
= $350,000
And, the other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= ($170,000 - $30,000) ÷ ($350,000)
= 40%
