In Respect to a Purported Contract an Offer Made to a Person

question 6

Multiple Choice

In respect to a purported contract an offer made to a person is ineffective if:

• A) It is made to a group of people without specifying who in the group can accept the offer.
• B) It is not brought to the notice of the person to whom it is directed.
• C) It is made to the whole world.
• D) It is not made in writing.

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Definitions:

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Expenses Overstated

A situation where the recorded amount of expenses is higher than the actual amount incurred, causing an understatement of net income.

Adjusting Journal Entry

a bookkeeping entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Net Income

The remaining income of a company once all taxes and costs are deducted from its total revenue.