Ray Promises to Give Steve His IPod in Exchange for Steve's

question 44

Multiple Choice

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when

• A) ​Ray offered to sell his iPod.
• B) ​Ray exchanged his iPod for $50.
• C) ​Steve promised to pay Ray for the iPod.
• D) ​Steve paid Ray $50 for the iPod.

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Definitions:

Purchasing Inventory

The process of acquiring goods and materials that a business sells or uses in its production process, an essential component of supply chain management.

Fixed Asset Sale

The process of selling long-term assets, such as property, plant, and equipment, for cash or other compensation.

Cash Increase

A rise in the amount of cash and cash equivalents held by a business.

Accounts Payable

Liabilities of a business representing money owed to creditors for goods and services purchased on credit.