Mysty Offered to Sell Her Car to Tim for $15

question 12

True/False

Mysty offered to sell her car to Tim for $15 000.Tim faxed a letter to her that said, "Consider it sold.I'll bring the money to you next Monday when I pick up the vehicle.Of course, for that price, I'll want you to install a new stereo in it." Tim did not hear anything more from Mysty, but he arrived at her door the following Monday with $15 000 in cash.He was delighted to find that a new stereo had been installed in the car, but disappointed when Mysty refused to accept his money or hand over the vehicle.Mysty is required to do so because there was a valid offer and acceptance.

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Definitions:

Expense

Costs incurred by a business in the process of earning revenue, typically categorized as fixed, variable, or periodic.

Accrual

Accrual is an accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Balance Sheet

A document showcasing a business's assets, liabilities, and owner's equity at a certain point in time.

Rent Paid

The amount of money paid by a tenant to a landlord for the use of property or space over a specified period.