Randy Promises to Give Stewart Her IPod in Exchange for Stewart's

question 50

Multiple Choice

Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when

• A)Randy offered to sell her iPod to Stewart.
• B)Randy decided to sell her iPod.
• C)Stewart promised to pay Randy $50.
• D)Stewart became aware that Randy was willing to sell her iPod.

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Definitions:

Operating Activities

Business actions that are directly related to the production, sale, and delivery of goods and services.

Notes Payable

Written promises to pay a certain amount of money, usually with interest, by a specified future date, recorded as liabilities on a balance sheet.

Accounts Payable

Accounts payable is a liability account that records the amounts a company owes to suppliers or vendors for goods or services received but not yet paid for.

Salaries Payable

A liability account representing the amounts owed to employees for work performed but not yet paid.