Millet Grains Cooperative and Corn Cereals,Inc

question 66

Multiple Choice

Millet Grains Cooperative and Corn Cereals,Inc.,discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed,including a two-year term. Millet Grains begins to perform,and Corn Cereals accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 15-1.Between Millet Grains and Corn Cereals,there is

• A)an oral contract only.
• B)a pre-contract only.
• C)a written contract.
• D)no contract.

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Definitions:

Income Statement

A financial document listing revenues and expenses, showing the profit or loss of a business over a specified period.

Straight-Line Amortization

A method of amortizing a bond discount or premium on a linear basis over the life of the bond or another asset.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Interest Paid

The amount of money paid over a period for the use of borrowed funds.