When Jeff's Car Breaks Down,he Asks Kwik Tow,Inc

question 14

Multiple Choice

When Jeff's car breaks down,he asks Kwik Tow,Inc.,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is

• A)an express contract.
• B)an implied contract.
• C)a quasi contract.
• D)no contract.

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Definitions:

Cost of Goods Sold

The specific expenses directly associated with the manufacturing of products a company sells, such as raw materials, workforce costs, and overhead expenses related to the production process.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases are made.

Operating Cycle

The operating cycle is the duration of time that takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.

Accounts Receivable

Outstanding payments due to a firm from its customers for delivered goods or services awaiting payment.