Answer:
c. the contract is discharged.
Explanation:
As the contract is not feasible to be completed not because of any parties of the contract, but because of externalities.
This provides for the no fault conditions on both the parties of the contract.
Here the construction was to be done by the Construction Contractors Inc. for Discount Retail Inc, at a place in Electro City.
But now the construction cannot happen as because Electro City has an amendment providing no construction at the particular place where Discount Retail Inc. wants the construction.
Answer: the correct answer is a. includes a credit to Bad Debt Expense of $3,650.
Explanation: the Debt was not going to be paid but then the company received the money so it corresponds the credit to Bad Debt Expense of $3,650.
Answer: False
Explanation:
The real interest rate is the nominal interest rate adjusted for inflation.
If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.
For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:
= 8 - 4 = 4%
If inflation is instead 2%, real rate would be:
= 8 - 2 = 6%
Real rate would be higher than anticipated.
Answer: The correct answer is "He performed the audit with due diligence".
Explanation: If the purchasers prove their required elements, in general Jones will have to prove that: <u>He performed the audit with due diligence.</u>
The objective of a due diligence audit is to serve as a support and element of judgment in the process of quantitative and qualitative evaluation of acquisition or merger transactions between two or more entities. Due diligence is essential to know the value of a company.
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