Andy: "This Is to Confirm Our Telephone Conversation of Earlier

question 111

Multiple Choice

Andy: "This is to confirm our telephone conversation of earlier today.200 lbs.of T-bone at $2.89 per pound."
Barb: "Yes,but that's 100 pounds at $2.99."
Andy: "Too late,we already reached agreement by phone."
Barb: "Too bad,it wasn't in writing."?Which of the following statements is true?

• A)Barb is incorrect.The phone conversation was a contract.
• B)Barb is correct.The agreement must be in writing to be enforceable.
• C)Andy can enforce the agreement with the parol evidence rule.
• D)none of the above

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Definitions:

Fiscal Year-End

The completion of a one-year, or 12-month, accounting period, used by governments and businesses for financial reporting and budgeting, which may or may not align with the calendar year.

Quarter Income Statement

A financial report that summarizes the revenues, expenses, and profits or losses of a company over a three-month period.

Impairment Test

An examination to determine if an asset's carrying value exceeds its recoverable amount, indicating if the asset is impaired.

Future Cash Flows

Estimates of the amount of money expected to be received or paid out over future periods.