Determine whether the statement is legally correct (true) or not (false). 1. An offer is subject to the complete will of the offeror and may be withdrawn or destroyed prior to its acceptance. 2. Actual delivery and payment is needed to establish existence of valid contract of sale

Determine whether the statement is legally correct (true) or not (false). 1. An offer is subject to the complete will of the offeror and may be withdrawn or destroyed prior to its acceptance. 2. Actual delivery and payment is needed to establish existence of valid contract of sale

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle

Section: Chapter Questions

Problem 19MCQ

See similar textbooks

Related questions

Q: The following certain attributes present into a contract to determine whether the arrangements with…

A: Revenue can be recognized when there is a contract with the customers and performance obligation has…

Q: Which of these three characteristics (I, II, and III) are required in order for a promised good or…

A: Promised goods or services will be considered distinct if: When it is capable to being distinct…

Q: First Statement: If the words of the contract are clear and leave no doubt on the intention of the…

A: Contract is made between the parties so that there will be no confusion left to either the parties…

Q: Give the SECOND exception to the general rule that: If the consideration of the contract consists…

A: If the consideration of the contract consists partly in money, and partly in another thing, the…

Q: As a general rule, one of the elements needed to make an agreement binding is consideration. True…

A: Consideration: A promisee gives a promisor something in exchange for it. Real or personal property,…

Q: It’s a contract whereby a person binds himself to render some service or to do something in…

A: Introduction: A contract is a legally enforceable agreement that creates, defines, and governs…

Q: Choose the right option All of the following statements are true about letters of intent except…

A: Letter of intent An agreement between two parties in which one party agrees to do business with the…

Q: First statement. The drawer’s liability is secondary. Second statement. The instrument becomes…

A: Financial Instruments: A financial instrument is defined as a contract between individuals/parties…

Q: A negotiable instrument can be indorsed by way of a restrictive indorsement, which prohibits further…

A: Bill of exchange: A Bill of exchange is a writing document that contains the information to confirm…

Q: True or False. An arbitration clause in a contract requires that any dispute concerning the contract…

A: The arbitration clause works in case of legal disputes between parties. It deals with the party's…

Q: Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue…

A: As per ASC 606, A contract is an agreement between two or more parties that creates enforceable…

Q: What is the effect of loss of the thing or object in a contract of sale?

A: What is the Sale of contract: It is the legal contract between seller and buyer to sale the goods at…

Q: Which statement is true when the outcome of construction contract cannot be estimated reliably?…

A: As per AS-7, the accounting treatment of construction contract with respect to recognition of…

Q: Who may institute action for annulment of voidable contracts? Briefly discuss.

A: Contract Act- The Indian Contract Act of 1872 lays out the groundwork for forming a legally binding…

Q: When an obligation is subject to an obligation, the moment the condition is fulfilled, the…

A: The following statement is True... When an obligation is subject to an obligation, the moment the…

Q: Discuss the difference between: A. Contract of Sale and Contract to Sell B. Sale by Sample, Sale by…

A: Contract of Sale and Contract to sell the contract of sale, the exchange of goods takes place…

Q: Determine whether the statement is legally correct (true) or not (false). 1. Conditions, interest,…

A: Sale represents that the seller would sell the goods or provide service in order to ear something in…

Q: Explain whether the following statement is true: “Duress is an unlawful threat of harm or injury…

A: A void contract is a formal agreement that is voidable from the moment it is signed. Although both…

Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? When it is…

A: Performance obligation is satisfied when control is transferred Revenue shall be recognized with the…

Q: Formalities in a contract can be self-imposed by the parties to a contract. Select one: True False

A: Contract is referred as an enforceable agreement, which helps in defining, creating, and also…

Q: When a bidder submits a proposal, does that act complete a contract? Explain.

A: For a stated cost, it is necessary to submit a bid to do the venture. Even the staff and machinery…

Q: If the promise to grant a license is distinct and that the license provides the customer the “right…

A: Contract Account is a ledger created when a corporation enters into a long term agreement with the…

Q: Discuss the effects of ratification in voidable contracts

A: A contract that contains one or both of these flaws can nonetheless be regarded legally binding if…

Q: Identify the best and worst types of contract on the basis of payment

A: Contract is referred to as the legal bind of an agreement, which used to define as well as govern…

Q: seller agrees or obliges

A: TRUE defines a contract of sale as a contract whereby one in all the catching parties obligates…

Q: Which of the following does not meet the definition O the signing of a cancellable contract for…

A: Solution: "The signing of a cancellable contract for purchase commitment" does not meet the…

Q: Which of the following is not a condition in the determination of when a valid contract exists: O…

A: In accordance with IFRS 15, a contract with a customer is said to exists only if the following…

Q: Which of the following is not a condition in identifying the contract with the customer as per IFRS…

A: As IFRS 15 - Revenue from Contracts with Customers, The standard provides a single, principles based…

Q: Under which of the following circumstance a contract does not exist a- The contract was not…

A: In order to make an agreement valid contract, the following conditions need to be fulfilled: There…

Q: Either party can choose to the contract in cases where both partiess to a contract are mistaken…

A: Mutual Mistakes is the result of an error by both parties about a material fact, i.e., one that is…

Q: A contract to sell is the same as a conditional contract of sale. Do you agree? Explain your answer.

A: A contract to sell is a contract that is legally binding and involves the purchase of products or…

Q: TRUE OR FALSE An instrument payable out of a contingency is not negotiable even if the…

A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…

Q: on the advantages and/or criticisms of the two theories. according the economic theory of contract…

A: By banning involuntary appropriation, property law promotes people to get the most out of their…

Q: How will you differentiate contract of sale from contract to sell?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: What exceptions are there to contracts that normally require a writing to be enforceable?

A: It is being written under the law that all agreement which are in writing could only be enforceable…

Q: Create an example of a contract that has the credit to be legal, the contract must be in writing…

A: One of the example:- "On Apr 9, 2021 John borrowed from Morgan a total of $100,000 at an interest of…

Q: An antenuptial contract must be notarially executed to be valid between the contracting parties.…

A: A contract entered into by a couple before their marriage, and restricting to retain their assets…

Q: Which of the following is NOT the correct statements regarding forward contracts? I. contain a…

A: A forward contract is a contract entered between the parties to buy and sell assets at a…

Q: What is the meaning of “counter-offer” in relation to the law of contract?

A: Counter Offer is a type of offer given in response of original offer.

Q: Discuss the contract according to its enforceability?

A: In basic terms, a contract implies when two gatherings put into composing an understanding that…

Q: The proper remedy for the following cases is reformation of the instrument, except for one. Which is…

A: Reformation can be defined as the remedy by means of which a written instrument is rectified or…

Q: Give the FIRST exception to the general rule that: If the consideration of the contract consists…

A: If the consideration of the contract consists partly in money and partly in another thing, the…

Q: contract purporting to

A: Statement I: In case of doubt, a contract purporting to be a sale with right of repurchase is…

Q: If an entity recognises the revenue associated with a contract with a customer over time (rather…

A: The question pertains to which of the two scenarios would be a more conservative approach : 1.…

Q: at transactions do you prefer to use negoti

A: Negotiable instruments are written contracts whose benefit could be passed on from its original…

Q: . A contract of adhesion is a: A. take or leave it contract. B. charging above the maximum interest…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Question

Determine whether the statement is legally correct (true) or not (false).

1. An offer is subject to the complete will of the offeror and may be withdrawn or destroyed prior to its acceptance.

2. Actual delivery and payment is needed to establish existence of valid contract of sale.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which of the following arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time? A receivable A contract asset A contract liability None of these choices
Determine whether the statement is legally correct (true) or not (false). 1. Conditions, interest, penalty, time or place of payment are examples of natural elements in a contract of sale. 2. Where necessaries are those sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor.
Which of the following is not a condition in the determination of when a valid contract exists: O The payment terms are identified. O The contract has to be in writing. O The parties have approved the contract. O It is probable that the consideration will be collected.
T/F 1.Sale is a mode that gives rise to a title 2. Nominate which means that it has been given a particular name by law. A certain set of provisions will be applicable In trying to construe issues related to the contract.
The amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties" is the definition of Select one: O a. the contract. O b. the performance obligation. O c. the transaction price. - O d. the consideration.
It’s a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. a. Contract of agency b. Contract of barter or exchange c. Contract for a piece of work d. None of the above
Explain the role of Anticipatory Breach of Contract in non-performance of contract. Briefly state and analyze the provisions of Contract Act dealing with Anticipatory Breach of Contract. Support your answer with suitable case study/ case scenario.
Determine whether the statement is legally correct (true) or not (false). Even where the contract has not been reduced to the required form, it is still valid and binding as far as the parties are concerned
Which of the following is not a condition in identifying the contract with the customer as per IFRS 15? a- Each party's rights with regard to the goods or services concerned can be identified b- It is certain that the entity will collect the consideration to which it is entitled c- The entity and the customer have approved the contract and are committed to perform their contractual obligations d- The payment terms can be identified
Give the FIRST exception to the general rule that: If the consideration of the contract consists partly in money and partly in another thing, the transaction is characterized by the manifest intention of the parties. * Answer in one complete sentence only.
Create an example of a contract that has the credit to be legal, the contract must be in writing specifying the amount, time of payment, interest and other terms agreed upon by both parties.
An antenuptial contract must be notarially executed to be valid between the contracting parties. True or false?