In the Last Accounting Period, an Operation Achieved Total Sales

question 35

Multiple Choice

In the last accounting period, an operation achieved total sales of $120,000. The operation's manager then budgeted a 4.5 percent sales increase for the next accounting period. What will be the manager's budgeted sales amount for the next accounting period?

• A) $124,800
• B) $125,400
• C) $126,000
• D) $126,600

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Definitions:

Present Intent

Refers to the current intention of a person to engage in a legal act, ensuring that the intent aligns with the execution of the act.

Valid Offer

A valid offer is a clear proposal made by one party to another indicating a willingness to enter into a contract under specified terms, which, if accepted, results in a binding agreement.

Firm Offer

Under the Uniform Commercial Code, a signed, written offer by a merchant containing assurances that it will be held open, and which is not revocable for the time stated in the offer, or for a reasonable time if no such time is stated.

Consideration

In contract law, something of value exchanged between parties that is necessary for a valid contract.