An Acceptance for a Bilateral Contract Is Effective When It

question 30

Multiple Choice

An acceptance for a bilateral contract is effective when it is ________.

• A) dispatched by the offeree
• B) dispatched by the offeror
• C) received by the offeree
• D) received by the offeror

---

Definitions:

Residual Value

The estimated amount that an asset is expected to sell for at the end of its useful life, subtracting any disposal costs.

Impairment Loss

A recognized reduction in the recoverable amount of an asset, indicating that its market value has dropped below its book value on the balance sheet.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation amount.

Capitalize Development Costs

The accounting practice of adding the costs associated with developing a new product or service to the balance sheet as an asset, rather than expensing them.