An Offer Is

question 25

Multiple Choice

An offer is

• A) a gesture made by one party to another to make a donation.
• B) a gift.
• C) a tentative promise made by one party, subject to a condition or containing a request to the other party.
• D) a donation.
• E) an agreement to give something to another party.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible, serving as a contra asset account.

Aging Method

An accounting technique used to estimate the amount of bad debt expense by classifying accounts receivable according to their age.

Credit Sales

Transactions where the buyer is allowed to pay for goods or services at a later date, rather than at the time of purchase.

Interest Rate

A cost, depicted as a percent of the original amount, that a lender demands from a borrower for the right to use resources.