Ollie's Orchards has dealt for many years with Trixie Coppola, who owns a catering company that specializes in desserts. He always bills her on a net 30 days basis
Ollie has just loaded a $5,000 shipment of grapes for Trixie onto the truck, when he receives a call from Frank's Fruit farms. Frank tells him that Trixie is months overdue on her accounts with him, and that he's also heard a rumour that Trixie is about to go "belly up". Which of the following statements is FALSE?
A) Trixie has done nothing that would allow Ollie to rescind the contract.
B) Ollie can hold the goods until payment is made.
C) Ollie can stop delivery on the basis that Trixie is insolvent
D) If Ollie stops delivery and Trixie is not insolvent, he will have to pay her damages for any loss she suffers as a result.
E) None of the above.
B
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Unlike more traditional promotional messages, those written for social media
A) are less interactive. B) enable companies to engage in conversations about their products and services. C) allow for less transparency and openness with customers. D) save money by allowing companies to rely on the news media to distribute important messages. E) are more persuasive.
Susqua, Inc. has held-to-maturity debt securities it purchased in 2018. At December 31, 2019, Susqua, Inc. reported a $120,000 impairment loss related to these securities. During 2020, the debtor was successful in registering a new patent which improved the debtor's operating outlook. This change of events resulted in a reversal of $45,000 of the impairment loss. At December 31, 2020, the fair value of the debt securities had increased by $68,000 over the impaired value previously recorded. Susqua, Inc. uses IFRS for its external reporting. How much, if any, of this reversal can Susqua, Inc. report in its income for 2020?
A. $120,000. B. $68,000. C. $45,000. D. $ - 0 -
For which of the following special purpose financial statements is a dual opinion on a special purpose framework and GAAP required?
a. Cash basis. b. Tax basis. c. Regulatory basis for general use. d. Contractual basis.
Under process costing, costs assigned to goods sold are transferred to the Cost of Goods Sold account from the ________. A perpetual inventory system is used.
A) Finished Goods Inventory account B) Work-in-Process Inventory account C) Raw Materials Inventory account D) Sales Revenue account