Davis Co and Ruby Creations enter an oral contract providing that Ruby will deliver three dozen dresses to Davis at $20 per dress. The next day, Davis sent Ruby a letter signed by Davis's purchasing agent confirming the quantity and item, but not mentioning the price. Which of the following is true?
a. Davis Co. is not bound by the terms of the letter unless Ruby responds in writing to verify the agreement.
b. Ruby Creations and Davis Co. were bound in an enforceable contract at the time they entered the oral agreement.
c. Davis is bound by the contract when its authorized agent sends the letter, but Ruby Creations is bound by the oral contract ten days after receiving the letter, unless it objects in writing within that time.
d. The parties cannot be bound by the contract because the price term was missing from the written confirmation.
c
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A $150,000 loan is to be amortized over 6 years, with annual end-of-year payments. Which of these statements is CORRECT?
A. The proportion of interest versus principal repayment would be the same for each of the 7 payments. B. The annual payments would be larger if the interest rate were lower. C. If the loan were amortized over 10 years rather than 6 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 6-year amortization plan. D. The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower. E. The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher.
When a company makes an accounting change, Generally Accepted Accounting Principles require that the company make changes to financial statements of prior years
Indicate whether the statement is true or false
Which of the following is true of collection float?
A) It represents the time delay between when payment is placed in the mail and when it is received. B) It represents the time between receipt of a payment and its deposit into a firm's account. C) It results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account. D) It results from the delay between the time when a customer deducts a payment from the checking account ledger and the time when the vendor actually receives the funds in a spendable form.
Which is not a type of adjustment to regulations often addressed in privatizations?
A) Exemptions from taxation B) Exemptions from regulations affecting tariffs, rates of return and technical standards C) Right of first refusal rights in future privatization efforts D) Remittance rights on capital and other exemptions from regulations relating to repatriation of profits and exchange rates