What Is the Legal Effect of a Counteroffer

question 26

Multiple Choice

What is the legal effect of a counteroffer?

• A)It destroys the original offer
• B)It imposes new terms into a contract:
• C)It is an act of repudiation of a contract
• D)It is an act of acceptance of an existing offer
• E)It creates a secondary offer

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, and interest.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and profit or loss.

Weighted Average Inventory

This accounting method calculates the cost of inventory based on the average cost of all similar items in the inventory, weighted by the quantity of each item purchased.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at specific intervals, used to determine cost of goods sold and ending inventory.