JJ Offers to Sell His Yacht to Tom for $250

question 55

Multiple Choice

JJ offers to sell his yacht to Tom for $250 000.Tom sends JJ an email asking if he would prefer payment in instalments or in one lump sum.Which of the following is true?

• A)Tom has accepted JJ's offer.
• B)Tom has rejected JJ's offer.
• C)Tom has made a request for further information.
• D)Tom has made an invitation to treat.

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Definitions:

Reasonably Competent Accountant

Refers to an accountant who possesses the average level of skill and knowledge expected of a professional in the accounting field.

Negligence

Negligence is a failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to unintentional harm or damage.

Audit Reports

Formal opinions or evaluations by auditors regarding the accuracy and completeness of a company's financial statements.

Registered Public Accounting Firms

are accounting firms that are registered with the appropriate regulatory body, allowing them to audit public companies.