Mike Inherited Some Antiques

question 18

Multiple Choice

Mike inherited some antiques.Pat agrees to buy them.In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says.If they are valued much higher than either Mike or Pat anticipated, Pat:

• A)has to buy at the price set by the Sotheby representative.
• B)has to buy, but at what Pat and Mike believe was a reasonable price.
• C)has no obligation to buy the antiques.
• D)can treat the contract as canceled.

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Definitions:

Fund Balance

The difference between the assets and liabilities in a governmental fund, representing the net assets available for spending.

Statement of Activities

A financial report mostly used by non-profit organizations, displaying revenues, expenses, and changes in net assets for a specific period.