The correct answer would be acceptance. It is a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts. It happens when the offeree and offeror are in mutual understanding between the terms in a contract.
Answer: An investment that matures in five years
Explanation:
Both investments may be of equal risks, but by virtue of having different maturity dates, they will not be priced the same.
This is because the discount rate (opportunity cost) will discount the maturity value more the longer the investment is such that the present value is lower.
4 year investment
= 1,000 / (1.068)^4
= $768.63
5 year investment
= 1,000 / (1.068)^5
= $719.69
The 5 year investment will have a lower present value and will be charged lower.
Answer:
$29,500
Explanation:
Given that,
Beginning inventory = $12,000
Ending inventory = $6,000
Purchases = $25,000
Purchase return = $1,500
Kuyu’s cost of goods sold during the period:
= Beginning inventory + Net purchases - Ending inventory
= Beginning inventory + (Purchases - Purchase return) - Ending inventory
= $12,000 + ($25,000 - $1,500) - $6,000
= $12,000 + 23,500 - $6,000
= $29,500
Answer:
Using straight line method over Double-declining balance method chances of loss or reduction in gain increases.
Explanation:
When we use straight line method it gives constant value that decrease the book value of plant assets while using double-declining balance method is reduce book value more aggressively in earlier years. Therefore, Book value of asset is much higher compare to double declining balance method hence, chances of loss or reduction in gain are obvious when we use the straight line method.
