Which of the Following Statements Is TRUE

question 35

Multiple Choice

Which of the following statements is TRUE?

• A)An offer is automatically terminated as soon as it is accepted by one person.
• B)An invitation to treat indicates that the offeror is willing to receive an acceptance.
• C)A comfort letter is used if at least one party does not have an intention to create legal relations.
• D)The courts use a subjective test to determine whether a statement is an offer or an invitation to treat.
• E)An invitation to treat indicates that the offeree is willing to receive an acceptance.

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of an organization's budgets and financial plans.

Total Budgeted Fixed Costs

The sum of all costs that do not change with the level of production or sales over a certain period.

Master Budget

The master budget is a comprehensive financial planning document incorporating all other budgets, which outlines an organization's financial and operational goals.

Responsibility Accounting

A part of management accounting that involves accumulating and reporting revenues and costs on the basis of the manager who has the authority to make the day-to-day decisions about the items.