While George Was Visiting His Physician, He Mentioned to Him

question 42

True/False

While George was visiting his physician, he mentioned to him that he wished to sell his expensive sailboat. The physician expressed an interest in buying the boat and offered to pay George $10,000 for it. George had intended to advertise the boat for $12,000 in the local newspaper but agreed to sell it to the physician for $10,000. Some weeks after the boat had been sold; George wished to avoid the contract. George may raise the claim of undue influence in an attempt to recover the sailboat.

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Definitions:

Book Value

Book Value is the value of an asset according to its balance sheet account balance, calculated by subtracting liabilities from assets.

Inventory

The basic substances, products under manufacturing, and completed items that form part of a company's assets, which are available or will soon be available for purchase.

Source of Cash

Any activity or operation within a business that generates cash, including operations, financing, and investing activities.

Accounts Receivable Period

The average number of days that it takes for a company to collect payments owed by its customers after a sale has been made.