Colleen Telephoned an Off-Campus Computer Store and Ordered Five Flash

question 6

Multiple Choice

Colleen telephoned an off-campus computer store and ordered five flash drives at $10 apiece. Later that day she observed that they were a very good buy; she called the store the next day to order 60 of them (for resale to her dorm-mates at a slight profit) . Which is true?

• A) The modification is void for lack of consideration.
• B) The modified agreement is unenforceable.
• C) The changed agreement is entirely enforceable.
• D) The modified contract is void.

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Definitions:

Financial Statement

A record that outlines the financial activities and condition of a business including balance sheet, income statement, and cash flow statement.

Misstatements

Errors or inaccuracies in financial statements that can arise from oversight or misinterpretation of financial information.

Omissions

Instances where information that should have been included in a document or conversation was left out, either intentionally or unintentionally.

Declining Balance

Declining balance is a method of accelerated depreciation in which an asset's book value is reduced at a faster rate in the early years of its life.