In the Landmark Case of Big V

question 50

Multiple Choice

In the landmark case of Big v.Boyd Gibbons Ltd.,[1971] 2 All E.R.183 (C.A.) ,the court was asked to consider a disputed matter involving the revocation of a firm offer regarding the sale of land.What is meant by the term "firm offer"?

• A) the consideration given in return for something to be received
• B) an offer that is irrevocable prior to its acceptance
• C) the monetary consideration exchanged for an offeree's promise
• D) a promise to keep an offer alive for a set period of time

Know the components and calculation of the cost of bond investments.

Identify the types of financial statements and their purposes.

Understand the procedures for recording bond investments and interest.

Differentiate between various methods of accounting for investments.

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Definitions:

Market Price

is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.

Net Profit Margin

A profitability ratio calculated by dividing net income by revenue, indicating the percentage of each dollar of revenue that results in net profit.

Total Assets

The sum of all current and long-term assets held by a company, indicating the total resources that a company has at its disposal.