Gerard, an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of services that he will probably never need. Although Gerard understands what he is doing when he enters the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way. Under the Restatement:
A) Gerard's contract is voidable at his option while it is entirely executory.
B) Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard's incompetency.
C) Gerard cannot avoid the contract if the terms are fair.
D) Gerard can only avoid the contract if the terms are grossly unfair.
A
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A store that sells books, magazines, and newspapers has an average inventory of $15,000 at cost. Its cost of goods for the previous year was $62,000, and its net profit was $9,000. Calculate the retailer's inventory turnover.
A. 14.5 B. 6.89 C. 4.13 D. 1.67 E. 2.14
Which of the following statements is not true regarding the use of a judgmental approach by auditors in determining whether a misstatement is clearly trivial?
a. The determination is based on past auditor experience. b. The determination is usually not very defensible to third-party users. c. The determination is usually not very defensible to regulators. d. The determination uses percentages for the likelihood of misstatement.
The use of electronic funds transfers makes check writing unnecessary
Indicate whether the statement is true or false
Under the Rights Theory, who holds the responsibility for protection of rights?
a. Individuals, under normative standards b. Government c. Individuals rights are not protected, just defined d. None of the above