Joe Find a Dog Wandering in His Yard and He

question 19

Multiple Choice

Joe find a dog wandering in his yard and he let it into the house. A day later he sees an advert on a tree stating that the owner of the dog will pay $100 to anyone who finds and returns the dog to the local SPCA office. Joe takes the dog to the local SPCS office. Which of the following is true?

• A) The kind of advert that is placed on the tree cannot give rise to a contract.
• B) Joe will be entitled to the reward because his performance of the obligation, in response to the offer, is all that is needed in a unilateral contract.
• C) The advert on the tree is an invitation to do business and cannot give rise to a contract.
• D) When Joe takes the dog to the SPCA, he makes the offer and if the SPCA accepts the offer, they are obliged to pay him.
• E) Joe did not communicate his acceptance of the offer to Mary and so no contract arose.

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Definitions:

Discount on Bonds Payable

The difference between the par value of a bond and its lower selling price, recognized as an expense over the life of the bond.

Contract Rate

The agreed-upon interest rate specified in a loan or bond contract.

Market Rate

The prevailing rate of interest for loans or investments within a specific market sector.

Journal Entry

A record in accounting that consists of a debit and credit action to document a business transaction in the general ledger.