Berlak Company entered into a contract with Charles Corporation.Berlak agreed to provide Charles with building supplies.Charles agreed to pay a total of $18,000 at delivery.Under the contract-based view, Berlak's net contract position can be assumed to be
A)nil
B)$18,000
C)$9,000
D)$4,500

Question

Quizplus · Accepted Answer

Under the contract-based view, Berlak's net contract position is nil until the delivery of the building supplies, as the payment is contingent upon delivery.

Berlak Company Entered into a Contract with Charles Corporation