James Is in an Art Gallery When Mitch,who Has No

question 71

Multiple Choice

James is in an art gallery when Mitch,who has no special art expertise,points to a painting and says,"That artist is so good.That piece will be worth a fortune in a few years!" James buys the painting,which does not turn out to be valuable.James tries to return the painting and recover his purchase price.A court will

• A)order the art gallery to pay James the full purchase price.
• B)orderMitch to pay James the full purchase price.
• C)enforce the contract between James and the art gallery.
• D)enforce the contract between James and the art gallery,but order Mitch to pay James the full purchase price.

---

Definitions:

Accounts Payable

Short-term liabilities or debts a company owes to its suppliers or creditors for goods and services received but not yet paid for.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Utilities Expense

Utilities expense refers to the cost incurred by a business for the consumption of utility services such as electricity, water, and gas.

Accounts Payable

Liabilities or amounts owed by a company to creditors for goods and services that have been purchased on credit but not yet paid for.