X Is a Homeowner Who Is Renovating His House and Needs

question 49

Multiple Choice

X is a homeowner who is renovating his house and needs it to be completed in two weeks.Y is the contractor who has promised to finish the job in the stipulated two weeks.Four days from the expected time of completion, Y says that she cannot finish the job on time.X offers to pay Y more money to have the house completed on time.Y completes the job on time but X refuses to pay the extra money that he promised.Has Y provided consideration for X's promise to pay more money?

• A)Yes.Y has finished the job on time.
• B)Yes.Y has accepted X's offer.
• C)No.Y has done no more than fulfil an existing legal obligation.
• D)No.Y has not paid X any money.

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Definitions:

Depreciable Assets

Assets subject to depreciation, reflecting the reduction in value due to wear and tear, decay, or decline in usefulness over time.

Cash Flow

The net amount of cash being transferred into and out of a business, which is used to maintain the company's operations.

Operating Activities

Business actions directly related to its day-to-day operations, such as selling products or services, which generate revenue and expenses.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.