In January,E-Treme Inc

question 42

Multiple Choice

In January,E-treme Inc.entered into an oral contract with Ralco,LLC,an accounting firm,for the preparation of its tax return.The contract is:

• A) unenforceable under the statute of frauds since it is not in writing.
• B) unenforceable under the UCC since it is not in writing.
• C) enforceable, but only up to a value of $10,000.
• D) enforceable even though it is oral.

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Definitions:

Cash Amount

The total value of cash on hand or in bank accounts, easily accessible for immediate use by the business.

Cost of Merchandise Sold

The direct costs attributable to the goods sold by a company, including purchase price, freight, storage, and packaging.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cash Payment

Money that is paid out by a business, often documented by a cash disbursement journal.