Bob Gates, aged 16, looks 19. He is also mentally incompetent, but it is not obvious that he is. Bob buys a top of the line computer from a salesperson, who has no idea that he is under age and incompetent. Bob paid $3,800 cash for the computer
On what grounds can Bob cancel the contract?
A) Mental incompetency alone
B) Because he is a minor
C) Because he paid cash for the computer
D) Both A and B
E) A, B and C
B
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The number of times interest charges are earned is computed as:
A) net income plus interest charges, divided by interest charges. B) income before income tax plus interest charges, divided by interest charges. C) net income divided by interest charges. D) income before income tax divided by interest charges.
Jerry offers to shovel the snow from Ben's driveway for $35 . Ben replies "OK." This is an example of
a. an implied, unilateral contract. b. an express, unilateral contract. c. an implied, bilateral contract. d. an express, bilateral contract.
Delia refuses to pay Ewing $500 in cash on their contract to repair certain theater sets, which Ewing still possesses. Ewing's lien on the sets will terminate
A. if Ewing continues to maintain possession. B. if Ewing does not file a written notice of lien within thirty days. C. if Ewing voluntarily surrenders possession. D. within thirty days.
During January 2018, the first month of operations, a consulting firm had following transactions:1. Issued common stock to owners in exchange for $20,000 cash. 2. Purchased $5,000 of equipment, paying $1,000 cash and signing a promissory note for $4,000. 3. Received $9,000 in cash for consulting services performed in January. 4. Purchased $1,500 of supplies on account; all of the supplies were used in January. 5. Provided consulting services on account in the amount of $16,000. 6. Paid $750 on account. 7. Paid $3,000 to employees for work performed during January. 8. Received a bill for utilities for January of $3,400; the bill remains unpaid. What is the amount of total revenue to be reported on the income statement for the month of January?
A. $29,000. B. $45,000. C. $9,000. D. $25,000.