When an Offeree Receives an Offer and Then Varies Some

question 5

Multiple Choice

When an offeree receives an offer and then varies some of its terms, the offeree

• A) has revoked the offer and modified his acceptance.
• B) has modified his acceptance of the offer.
• C) has accepted the counteroffer.
• D) has rejected the offer.
• E) has accepted the offer.

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Definitions:

Discount Period

A set time frame during which a buyer can pay less than the full amount due, usually as incentive for early payment to the seller.

Cash Discount

is a reduction in the invoice price offered by sellers to buyers as an incentive to encourage prompt payment of their accounts payable.

Customer Refunds Payable

Liabilities owed to customers for products returned or services not satisfactorily rendered.

Merchandise Inventory

The total value of a retailer's goods that are available for sale to customers, including items purchased from suppliers and items ready for sale.