Which of the Following Is Not True Regarding Firm Offers

question 42

Multiple Choice

Which of the following is not true regarding firm offers?

• A) A firm offer automatically occurs when an offer or promise is made by one merchant to another.
• B) Firm offers do not require consideration for the offer to remain open.
• C) Firm offers occur only between merchants.
• D) Firm offers must be in writing.

Analyze a company's debt-to-equity ratio and interpret its financial implications.

Prepare journal entries for bond issuance including the recognition of discounts/premiums.

Apply the effective interest method for bond interest and discount/premium amortization.

Account for finance leases, including the initial recognition and subsequent payment handling.

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Definitions:

Credit Policy Variable

An element that defines the guidelines under which credit is extended to customers, including terms of payment and interest rates.

Credit Period

The duration of time a buyer is allowed to pay for goods or services received, before interest or penalties begin accruing.

Collection Policy

The specific strategies and methods a company uses to manage the collection of its accounts receivable.

Credit Policy

The guidelines a company follows to determine the amount of credit to extend to customers and the terms of payment.