What are the consequences of not obtaining a letter of credit?
What will be an ideal response?
When a buyer and seller enter into a contract and the buyer agrees to obtain a letter of credit (or a seller agrees to obtain a standby letter of credit), the consequences of failure to do so depend on whether the letter was (1) a condition precedent to the formation of the contract or (2) a condition for the performance of the contract.
In the first case, there will be no contract and consequently no breach. In the second, because the contract already exists, the failure to obtain a letter of credit will be a breach that will entitle the injured party to sue for damages.
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Unsolicited application letters to prospective employers
A) require more research than solicited letters. B) allow a clear target to focus on. C) should repeat key pieces of information from the résumé. D) identify what the organization is doing wrong and how you can contribute to its success. E) need to be more gimmicky than solicited application letters.
Jasper makes a $45,000, 90-day, 6.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)
A. $243.75. B. $2925. C. $1462.50. D. $32.50. E. $731.25.
A bank reconciliation should be prepared
A) whenever the bank refuses to lend the company money. B) to explain any difference between the company's balance per books with the balance per bank. C) when an employee is suspected of fraud. D) by the person who is authorized to sign checks.
Which of the following statements is true?
a. In an actual cost system, the actual cost of direct material and direct labor are accumulated in the WIP inventory account. b. In an actual cost system, overhead cost are accumulated separately in an overhead control account and assigned to WIP at the end of the production process. c. An actual cost system is impractical because all production overhead costs must be available in order to assign overhead costs. d. b and c are both true.