If a Contractor's Bid Was Significantly Low Because He or She

question 26

True/False

If a contractor's bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.

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Definitions:

Income Summary

An account used in the closing process in accounting to gather all revenues and expenses for a period before transferring the net result to the capital account.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Expenses Closed

The process at the end of an accounting period where expense accounts are closed and their balances transferred to a summary account.

Owner's Capital

The amount of equity a business owner has invested in their firm or the net assets belonging to the owner.