Which of the Following Sequence of Events Follows a Rise

question 242

Multiple Choice

Which of the following sequence of events follows a rise in the discount rate?

• A) r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↑
• B) r↑ ⇒ I↓ ⇒ AE↓ ⇒ Y↓
• C) r↓ ⇒ I↑ ⇒ AE↑ ⇒ Y↑
• D) r↑ ⇒ I↑ ⇒ AE↑ ⇒ Y↑

Comprehend the doctrine of promissory estoppel and its application to enforce non-contractual promises based on reliance.

Identify and explain the essential elements required for the formation of a valid contract.

Learn the difference between valid, void, and voidable contracts.

Understand the various classifications of contracts: express, implied, executed, executory, bilateral, and unilateral.

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Definitions:

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at set intervals, affecting the cost of goods sold calculation.

Discounts Lost

Refers to the additional cost a company incurs for not taking advantage of the cash discounts offered by suppliers for early payments.

Net Method

The Net Method is an accounting procedure that records the purchase of goods or services after deducting any discounts for early payment.