Jeb Submits a Bid to Construct a Student Union Building

question 38

Multiple Choice

Jeb submits a bid to construct a student union building for the local community college. He realizes after submitting the final bid that he forgot to include the cost of the window casings for the entire building. He may:

• A) revoke his bid at any time.
• B) not revoke his bid due to the statutory irrevocability of the bid.
• C) reject the offer of the college to build the student union when the college chooses his bid because it is the lowest.
• D) refuse, based on the windfall theory, to put in the window casings even if they were part of the bid specifications put out by the college.

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Definitions:

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Income Tax Expense

The amount of income tax a company is obligated to pay to the government, based on its taxable income.

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when they are incurred.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.