Brett Offers to Sell His Old but Functioning Cell Phone

question 75

Multiple Choice

Brett offers to sell his old but functioning cell phone to James for $65.James says he will accept the offer if Brett lowers the price to $60.James has

• A) made an unequivocal acceptance.
• B) made a counteroffer.
• C) demonstrated the exculpatory rule.
• D) entered into an option contract.
• E) entered into an executory contract.

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Definitions:

Operating Cycle

The duration it takes for a company to purchase inventory, sell it, and then convert the sales back into cash. It reflects the efficiency with which a company can turn its product into cash.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors for goods and services received but not yet paid for.

Equity Issue

The process of raising capital through the sale of shares in a company, either through public offering or private placement.