Which of the Following Statements Is Not Generally True of an Auction

question 32

Multiple Choice

Which of the following statements is not generally true of an auction?

• A)The call for bids is an invitation to treat
• B)The bidders are offerors
• C)There is no contract until the auctioneer accepts an offer on behalf of the seller
• D)If there is no reserve and the auctioneer refuses to sell to the highest bidder the vendor can be sued for specific performance of the contract

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and disposal.

Present Value

The present value of a future amount of money or series of cash flows, assuming a certain return rate.

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality, used in accounting to value assets.