X Offers to Sell His Boat to Y

question 24

Multiple Choice

X offers to sell his boat to Y.X kindly promises to keep the offer open for one week to give Y time to think about it.Which of the following is not correct?

• A)X can sell the boat to Z before the week is over.
• B)Y can accept the offer at any time during the week.
• C)X can revoke the offer and keep the boat.
• D)If X sells the boat to Z before the week is over the contract between X and Z will be void.

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Definitions:

Transaction Posted

The act of recording a financial transaction in the accounting records of a company.

Debit

A ledger entry contributing to the growth of assets or lessening of liabilities in a company's financial statement.

Credit

The provision of resources (such as money) by one party to another party where the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.

Transposition Error

A common accounting mistake where numbers are mistakenly reordered, leading to inaccurate data entry.