Abigail signed a contract to purchase a new car from Wolf's Auto Sales Company. The seller breached its agreement by not delivering the car. Abigail went to another car dealer and purchased the same model of car at the same price. Although she had
experienced a legal injury, Abigail has no actual financial or other damages as a result of the breach. If Abigail sues and wins, what type of damages will she be awarded?
Abigail will be awarded nominal damages. Nominal damages refer to a token sum, typically one dollar. Nominal damages are given to a plaintiff who can demonstrate that the defendant breached the contract but cannot prove serious injury. Because Abigail was able to purchase the same car for the same amount, she has no real injury. A nominal damages award recognizes the technical breach by the car dealership, but because Abigail had no injury due to the breach, she is not entitled to compensatory damages. Nominal damages provide the plaintiff with a "moral victory."
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a. A credit to Cash for $6,600. b. A debit to Accounts Receivable for $6,600. c. A debit to Accounts Receivable for $2,200. d. A debit to Sales Revenue for $6,600.
Calculate the percent gross profit for a company if the sales revenue generated is $200 million, and the firm sells 60 products that cost $2 million each to produce
A) 20% B) 40% C) 50% D) 60% E) 80%
________ questions are used to ferret out respondents who do not meet certain qualifications
A) Qualified B) Screening C) Identifying D) Ferreting E) Weed-out
Currently, the FASB's Statements of Accounting Concepts (Nos. 5 and 6) define an asset as having all of the following characteristics except:
a. costs not guided by management's judgment b. probable future benefits c. resulting from past transactions and events d. something that is obtained/controlled by the entity