Assume Harvey Buys a Bull from Mike for the Purpose

question 16

Multiple Choice

Assume Harvey buys a bull from Mike for the purpose of breeding, and Mike was aware of Harvey's purpose in purchasing the bull. Later, the bull was discovered to be sterile, although at the time of sale both Harvey and Mike believed the bull was not sterile. The contract is:

• A) voidable based on fraud.
• B) voidable based on misrepresentation.
• C) voidable based on bilateral mistake.
• D) voidable based on economic duress.

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Definitions:

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs.

Overapplied Manufacturing Overhead

Occurs when the amount of overhead applied to products or services exceeds the actual manufacturing overhead costs incurred.

Debit

An entry on the left side of an account, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense. In finance, it's also the ability to obtain goods or services before payment, based on the trust that payment will be made in the future.