Answer:
Kevin will increase consumption with the bundle of goods at a new higher indifference curve tangent to the new budget constraint.
Explanation:
Kevin's consumption possibilities frontier basically shows the budget constraint that Kevin faces when deciding what to purchase. It also represents the opportunity cost of consuming one product instead of another.
If the price of one of the products changes, then the whole consumption possibilities change and a new bundle of goods will be available.
E.g. Kevin had $10, sushi costs $5 and sandwiches cost $5. He can either buy 1 sushi and 1 sandwich, 2 sushis or 2 sandwiches. If the price of sushi decreases to $2.50, then Kevin's options increase. He can now purchase 2 sushis and 1 sandwich, 2 sandwiches or up to 4 sushis.
As the owner of 100 shares of Megabux Corporation’s stock, Lara Sanders wants to know whether her company earned a profit or loss during the past year. She can find the answer to this by looking at Megabux’s:
Answer:
Income statement
Explanation:
A company's income statement includes all the revenues and expenses that a company incurred during a certain accounting period (monthly, quarterly, annual). It starts with the revenues and then the expenses and costs are subtracted until you find the company's net income.
As part of the American Recovery and Reinvestment Act, $7 million was earmarked to build a bridge over a railroad crossing so that 168 Nebraska town residents wouldn't have to wait for the trains to pass. Which of the following best explains why this proposal was passed?
A) The benefits were highly diffused while the costs were very concentrated.
B) The costs were highly diffused while the benefits were very concentrated.
C) The costs were external while the benefits were internal.
D) The total benefit to the bridge was greater than the total cost
Answer: B) The costs were highly diffused while the benefits were very concentrated
Explanation: The American Recovery and Reinvestment act was enacted by congress and passed into law in 2009. The act which was aimed at alleviating the burden and promoting economic growth after the 2008 recession. It was meant to serve as a palliative or stimulus to aid economic recovery. The $7 million proposal earmarked to erect a bridge over the railway crossing was passed into law due to the fact that the benefits, relief and succor which the bridge provides to the over 168 Nebraskans coupled with the subsidized or diffused cost of putting the bridge in place were decisive factors towards acceptance of the proposal.
Sunland Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2017, the company’s Cash account per its general ledger showed a balance of $6,823.90. The bank statement from Emporia State Bank on that date showed the following balance.
EMPORIA STATE BANK
Checks and Debits Deposits and Credits Daily Balance
5-317,053.00
A comparison of the details on the bank statement with the details in the Cash account revealed the following facts
1. The statement included a debit memo of $57.00 for the printing of additional company checks
2. Cash sales of $900.15 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $950.15. The bank credited Sunland Company for the correct amount
3. Outstanding checks at May 31 totaled $285 25, and deposits in transit were $1.897.15.
4. On May 18, the company issued check No. 1181 for $684.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sunland Company for $648.00
5. A 52.792.00 note receivable was collected by the bank for Sunland Company on May 31 through electronic funds transfer
6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $343.00 that was incorrectly charged to Sunland Company by the bank
7. On May 31, the bank statement showed an NSF charge of $465.00 for a check issued by Sara Ballard, a customer to Sunland Company on account
Prepare the bank reconciliation at May 31, 2017. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, eg. 52.75)
Answer:
Bank account reconciliation:
Bank account balance $7,053
+ Deposits in transit $1,897.15
+ Check charged by error $343
- Outstanding checks ($285.25)
Reconciled bank account $9,007.90
Cash account reconciliation:
Cash account balance $6,823.90
+ Note receivable collected by bank $2,792
- Bank fees for printing checks ($57)
- Error on deposit slip ($50)
- Error on recording check ($36)
- NSF check ($465)
Reconciled cash account $9,007.90
McCoy's Fish House purchases a tract of land and an existing building for $940,000. The company plans to remove the old building and construct a new restaurant on the site. In addition to the purchase price, McCoy pays closing costs, including title insurance of $2,400. The company also pays $12,800 in property taxes, which includes $8,400 of back taxes (unpaid taxes from previous years) paid by McCoy on behalf of the seller and $4,400 due for the current fiscal year after the purchase date. Shortly after closing, the company pays a contractor $47,000 to tear down the old building and remove it from the site. McCoy is able to sell salvaged materials from the old building for $3,800 and pays an additional $10,400 to level the land.
Required: Determine the amount McCoy's Fish House should record as the cost of the land. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
$1,004,400
Explanation:
The computation of the cost of land is shown below:-
The Total cost of land = Purchase price of the land + Title Insurance + Property Taxes + Cost of removing the building + Level the land - Salvaged materials
= $940,000 + $2,400 + $8,400 + $47,000 + $10,400 - $3,800
= $1,004,400
Therefore for computing the total cost of land we simply applied the above formula.
A seller is under contract to sell a property using the standard offer to purchase and contract. The elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and electrical outlet covers and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction?
a. the draperies and blinds.
b. the hand-painted light switches and electrical outlet covers.
c. the draperies.
d. none of the items.
Answer: The draperies
Explanation:
Fron the question, we are informed that a seller is under contract to sell a property using the standard offer to purchase and contract.
The seller can legally remove the draperies before the close of the transaction. It should be noted that under the NCBA/NCAR contract , all other items in the list are regarded as fixtures that are meant to remain along with the property but the draperies is not listed among them and therefore may be removed.
Suppose that a company based in Dallas, Texas, initially confronts only four other rival firms. Its own market share is percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is percent. Then a sixth firm, located in Cleveland, Ohio, enters the same industry. The new firm captures percent market share, and the market share of one of the smallest three original incumbents declines to percent as well. After the Cleveland firm's entry into the industry, what are the values of the four-firm concentration ratio and of the Herfindahl-Hirschman index?
Answer:
1. 86.7%
2. 2244.4
Explanation:
The computation is shown below:
1. The new 4 firm concentration ratio after entry is
= Total mix share of 4 largest firms
= 30% + 30% + 13.33% + 13.33%
= 86.7%
2. Now HHI index is
= sum of squared shares
= 30^2 + 30^2 + 13.33^2 + 13.33^2 + 6.67^2 + 6.67^2
= 2244.4
Hence, we applied the above values so that each part could be determined
Greg was looking at different websites to complete his paper for his accounting class. He found several websites that ended in .org, .gov, and .edu. He was unsure about franksmith.net, created by Frank Smith, which gave him a lot of information that he thought was important. Which best describes how Greg could find more information about the website to check for its validation?
In this question the options are missing; here are the options:
Which best describes how Greg could find more information about the website to check for its validation?
Greg could assume it is valid because it is a .net.
Greg could look at the contact page to validate Frank's expertise.
Greg could look to see if the website was updated recently,
Greg could assume it is valid since Frank is not selling anything.
The answer to this question is B. Greg could look at the contact page to validate Frank's expertise.
Explanation:
One of the key factors that make a source to be credible is the expertise of the author because if the author is an expert in the area, the source is generally considered as credible. For example, the words of Isaac Newton are a credible source if these are related to areas such as maths, physics, or astronomy because he was an expert in this area. In this context, one way Greg could validate this source is by checking who is Frank Smith to verify if he is an expert in the topic. This makes option B correct.
Answer:B) Greg could look at the contact page to validate Frank’s expertise.
Explanation: Got it correct, edu.23
Which managerial function involves setting goals, establishing a strategy to pursue those goals, and forecasting future threats and opportunities that might influence the company’s needs and strategies? A. planning B. organizing C. leading D. controlling
Answer:
A. Planning
Explanation:
There are five types of management functions i.e planning, organizing, staffing, directing and planning.
The planning refers to the make out a plan how to accomplish the company goals and objectives with the help of making strategy so it is easy for company to reach it also at the same time it forecast the swot analysis i.e (strength, weakness, opportunities, and threats) that affect the needs and strategies of the company
Hence, the correct option is A
Q 8.38: The financial statements of the Robertson Company report net sales of $400,000 and accounts receivable of $40,000 and $20,000 at the beginning of the year and end of year, respectively. What is the accounts receivable turnover for Robertson
Answer:
13.33 times
Explanation:
The computation of the accounts receivable turnover ratio is given below:
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
where,
Net credit sales is $400,000
And, the Average accounts receivable would be
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
= ($40,000 + $20,000) ÷ 2
= $30,000
So, the account receivable turnover ratio is
= $400,000 ÷ 30,000
= 13.33 times
Kate also wishes to pay dividends on both her common shares and the preferred stock. She is a little confused between cash and stock dividends. Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock-holder of the common stock, what would be the effect of issuing a 10 percent stock dividend
Find the answers in the explanation below
Explanation:
Cash dividend: Cash dividend is dividend that is paid in cash to shareholders in the event that the company or firm does not need the money for any kind of operation. This means that the company is giving economic value to its shareholders. This transfer of economic value to shareholder means that the shares price of the company will drop. An example is a company having a share dividend of 5%. That means that the price of the company shares will fall by 5%.
Stock dividend: Stock dividend unlike cash dividend is increase stock dividend as well as help stockholders to avoid tax. This subsequently does not increase the value of the company. For example, if stock dividend of a company is 5% and as much as 1 million shares, when stock dividends are declared the stockholder gets extra of 50,000 shares. The stock holder can either keep the shares or sell it to create his own
Cheers
Coercive power is the Multiple Choice power exercised by use of fear of punishment for errors of omission or commission by employees. power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates. arises from manager access, control, and distribution of information that is not freely available to everyone in an organization. ability of the leader or manager to confer rewards for positive behaviors or outcomes.
Answer:
power exercised by use of fear of punishment for errors of omission or commission by employees.
Explanation:
Coercive power is characterized because the use of force to get a worker to obey an order or command, where control comes from one's right to threaten the employee for non - adherence. Like that this power is in place when a person worked an order in fear of losing their job or their benefits package.
Answer:
the power exercised by use of fear of punishment for errors of omission or commission by employees
Explanation:
In simple words, Coercive control is characterised as the utilization of coercion to compel an individual to obey a directive or command, whereby power derives with one's right to discipline the worker for violations. Of instance, this control is in place when an individual performs an instruction in fear of being attacked or their signing income.
Thus, from the above we can conclude that the correct option is A.
The Credit Alliance v. Arthur Andersen & Co. case established three tests that must be satisfied for holding auditors liable for negligence to third parties. All of the following are tests described except :________.
a) Knowledge by the accountant that the financial statements are to be used for a particular purpose.
b) The intention of the third party to rely on those statements.
c) Some action by the accountant linking hi or her to the third party than provides evidence of the accountant's understanding of intented reliance.
d) The identity of the third party must be directly known to the auditor.
Answer:
D.
Explanation:
The Credit Alliance v. Arthur Andersen & Co. is a case that questions if an accountant should be held liable to the third party on whom it is reliable to his detriment absent privity of contract.
The Court of Appeals of New York, on July 2, 1985, affirmed that an auditor should not be held liable if they fulfill the following three requirements.
The auditor should have knowledge that the financial statements will be used for a particular purpose.The intention of the third party to rely on those statements. Some action should have been there by the acccountant that links him or her to the third party which will clarify the auditor to understand why third party is relying in the statement.So, from the options stated in the question, one that is not included in this case is the fourth one. Thus the correct answer is option D.
A standard work year is 2080 hours at the Luther Mill and it takes about 2 hours to fill a customer order. The manager at the mill is always concerned about employee idle time, so he aims for a capacity cushion of two percent. Last year saw 15,000 customer orders at the mill and the manager has a new Mercedes in mind as a company car, so he hopes that there is an increase of 10% in customer orders for next year. How many workers will the manager need to have at the mill next year
Answer:
16 workers
Explanation:
current demand = 15,000 customers x 2 hours per customer = 30,000 hours
we add the 2% cushion = 30,000 x 1.02 = 30,600 hours
if sales increase by 10% next year, next year's demand = 30,600 x 1.1 = 33,660 hours
33,660 hours / 2,080 hours per employee = 16.18 employees, which we should round to 16
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finished improperly. Fancy can sell the tables as seconds for $305,000 or spend an additional $315,000 to refinish them and sell them for $605,000.
Which of the following is not relevant to management's decision regarding refinishing the tables or selling them as is?
a) The additional $300,000 revenue that can be generated if the tables are refinished.
b) The $355,000 manufacturing cost of the tables already incurred.
c) The additional $315,000 cost to refinish the tables.
d) The effect of selling "seconds" on Fancy's reputation as a fine-furniture manufacturer.
Answer:
b) The $355,000 manufacturing cost of the tables already incurred.
Explanation:
The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the
Tables, or sell them as they now are
All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.
So, the correct answer is b
what is a good online website for a highschool student to do 40 hours volunteering?
there are many websites to volunteer
I've found some websites from the given list
1. United Nation Volunteers
2. Catchafire
3. Smithsonian Digital Volunteers
4. Amnesty Decoders
5. Translators Without Borders
6. Crisis Text line
7. Zooniverse
8. Project Gutenberg
9. Dosomething.org
John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs?
A) John's policy will pay $1,500, and Kate's policy will pay nothing.
B) John's policy will pay $1,750, and Kate's policy will pay nothing.
C) Kate's policy will pay $1,750, and John's policy will pay nothing.
D) Kate's policy will pay $1,500, and John's policy will pay $250.
Answer: D. Kate's policy will pay $1,500, and John's policy will pay $250.
Explanation:
The deductible is the amount that a policy holder has to pay before the insurance company pays the remaining amount.
From the question, we are informed that John has an auto which is covered for collision losses subject to a $250 deductible while Kate's auto also has collision coverage but her deductible is $500.
If a $2,000 collision loss occurs when John borrows Kate's car because his car is in the shop for repairs, since John has a deductible of $500, Kates policy will pay ($2000 - $500) = $1500 and John's policy will pay $250.
Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette market, then a. the equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. c. the equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. d. There is not enough information to answer the question.
Answer:
b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.
Explanation:
A negative externality occurs when the costs of economic activities to third parties not involved in economic activities are greater than the benefits.
Negative externality are usually overproduced in the economy. so, the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.
CEO reduced the list of candidates to include only those applicants the CEO found acceptable. The CEO is implementing the political strategy of controlling the agenda. being irreplaceable. overlapping authority. emphasizing status inconsistency. relying on objective information.
Answer:
A). Controlling the agenda.
Explanation:
The CEO is here executing the political strategy of 'controlling the agenda' as he is controlling that which candidates would go further and selected for different processes. It will help him in directing the attention on candidates which he wants and limit the decision(regarding the selection of candidates) to the only ones which she/he finds desirable/acceptable. It will allow him in having a political edge and control over the decisions and have an adavantage according to the situation. Thus, option A is the correct answer.
Jill is starting a fast food delivery company. She has designed a logo and plans to print flyers to advertise her services. Jill plans to publish a book based on her experiences to inspire young entrepreneurs. To help protect her publishing rights, she should register a ____.
Answer:
Copyright
Explanation:
Copyright refers to creating a record of your work that proves that you are the owner and because of that, you are the only one allowed to make copies of it and it protects against an unauthorized use. According to this, the answer is that to help protect her publishing rights, she should register a copyright because this will allow her to have a record of this and avoid plagiarism.
What can students do with their recorded data in Science Journal?
A) Calculate the standard deviation of a set of data values
B) Review recorded graphs and individual data points
C) Make their data audible
D) Share and export experiments and sensor recordings
Answer:
B. Review recorded graphs and individual data points
C. Make their data audible
D. Share and export experiments and sensor recordings
Explanation:
The Science Journal application refers to the scientific journal at the digital platform that helps users to record projects using pictures, notes, and built-in sensors from the phone of the user. While setting up a new experiment it provides the opportunity to document one's thoughts and findings as he or she begins to ask queries and to come up with their own investigations. Its user-friendly features use sensors and recorders of telephones in an efficient way.
Find the answer to the following question: Where should students go for information about their degree program, how many credits they need to graduate, how many credits each course is, etc.? Select one: a. Students should visit the University Catalog to find answers to these questions. b. Students should contact Student Services to ask these questions. c. Students should ask their Instructors these ques
Answer:
Students should visit the University Catalog to find answers to these questions.
Explanation:
College or university catalog refers to the written document that includes all the information related to them. It is a form of publication from the university's end comprising all the necessary details and information. The catalog describes all the academic programs offered by the university and the rules and regulations. The requirements and procedures to be followed are also stated in the catalog.
As per the given excerpt, the student should visit the University Catalog for all the information that he is looking for.
Geraldo went to the supermarket to buy a bottle of chocolate syrup. While there, he saw the latest copy of National Enquirer at the checkout stand. He had not planned on buying the magazine, but on the spur of the moment, he bought himself a copy. This decision by Geraldo is an example of:
Answer: Impulse buying
Explanation:
Impulse buying could be defined as the act of buying an item in a market unplanned. This happens when you saw something at the market that caught your fancy or that you really needed but didn't remember to budget for it when going to the market for shopping, many times this affects your plan or budget because it's not planned but since it's a need, then they're worth it most times. This an example of what Geraldo did at the mall.
How do you start an organization?
For a Profit Organization:
1. Select the best business structure which favors you in taxes and protect. Such as corporation, limited liability company, sole proprietorship, general partnership, limited partnerships or a professional incorporation.
2. Decide the name you want to use to advertise your business.
3. Register company name with the state, county and the federal if applicable.
4. Check licensing requirements with the city county, city, state and federal.
5. Open a bank account
6. Advertising and Marketing
For a Non Profit Organization:
1. There are two types of non profit organizations religious and good cause.
2. It has to be registered wither with the state or county, depending upon the structure and the state you want to incorporate.
3. Apply with the federal to obtain a tax exempt status, so that your donors can claim donations on their tax returns.
4. Open a bank account
5. Delegate duties what you have mentioned in the article you submitted to the Internal Revenue Service.
Using the following balance sheet and income statement data, what is the debt to assets ratio? Current assets $14,000 Net income $ 21,000 Current liabilities 8,000 Stockholder's Equity 39,000 Average assets 80,000 Total liabilities 21,000 Total assets 60,000 Average common shares outstanding was 10,000.
Answer:
35%
Explanation:
The following information were derived from a balance sheet and income statement data
Current assets is $14,000
Net income is $21,000
Current liabilities is 8,000
Stock holders equity is 39,000
Average assets is 80,000
Total liabilities is 21,000
Total assets is 60,000
Therefore, the debt to assets ratio can be calculated as follows
= Total liabilities/Total assets
= 21,000/60,000
= 0.35×100
= 35%
Hence the debt to assets ratio is 35%
Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a(n):
Answer: Certificate of deposit
Explanation: Herbs investment with Applebottom Bank and Trust Company represents a certificate of deposit which differs from the usual savings deposit due to the the high interest it pays and the fact that it is time bound. The depositor enters into an agreement with the financial institution issuing the certificate of deposit and a fixed term of deposit is agreed with a better interest than usually attached to other deposit accounts. This restricts the depositor from being able to withdraw any amount from his / her account before the stipulated date.
John purchases a life insurance policy on his wife Betty where he pays the premium and he will receive the life insurance money when she dies. John is both the ________ and the ________ who will receive the ________ upon the death of Betty, the ________.
Answer:
Policy owner
Beneficiary
Face amount
Insured
Explanation:
John is both the “Policy owner” and the “Beneficiary” who will receive the “ Face amount” upon the death of Betty, the “Insured”.
The term policy owner is used to refer to a person who buys and pays the premium. At the same time, a beneficiary is a person who receives the face amount that was on the name of the insured (Betty).
It is given that John has bought the policy and paying the premium so he is the owner. Moreover, he is the beneficiary because he is getting the insurance amount after the death of betty who is insured.
Jon had adjusted gross income of $25,000 in 2019. During the year, he incurred and paid the following medical expenses: - Drugs and medicines prescribed by doctors $300 - Health insurance premiums $750 - Doctors' fees $2,250 - Eyeglasses $75 Jon received $900 in 2019 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?
Answer:
The allowable medical deduction after Adjusting Total Income is $0
Explanation:
Particulars Amount
Drugs and Medicines prescribed by doctors $300
Add:- Health insurance premium $750
Add:- Doctors Fees $2,250
Add:- Eyeglasses $75
Less:- Reimbursement of doctors fees received ($900)
$2,475
Less :- Adjusted Gross Total Income of $25,000 $2,500
Allowable medical deduction after adjusting -25
total Income
Therefore, as the resultant amount is negative. The allowable medical deduction after Adjusting Total Income is $0
Workings
Adjusted Gross Total Income of $26,000
= $26000 × 10%
= $2,600
Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached?
Answer: Listing expires and terminated
Explanation: In the scenario above, Avalon homes only serves to aid the sale of Trina's property and as such will not be held liable for any offense if the property isn't sold within the listing period. Avalon homes isnt responsible for either the slow nature of market at the time or the fact that Trina's property belongs to the high end category which often takes even more time to get a buyer for. Therefore, once the contract period of Trina's listing is reached, the listing expires and it's terminated unless another listing contract is struck between both parties.
An aging of a company's accounts receivables indicates that the estimate of uncollectible receivables totals $7,900. If the Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a
Answer:
Debit to Bad Debt Expense Account for $7,200
Explanation:
Based on the information given we were told that the company accounts receivable shows the estimate of uncollectible receivables of the amount of $7,900 which means that if the Allowance for Doubtful Accounts has an amount of $700 as a credit balance, the adjustment to record the bad debt expense will be :
Debit to Bad Debt Expense account for the amount $7,200 calculate as :
Uncollectible receivables totals $7,900-Allowance for Doubtful Accounts $700 =$7,200
(7,900 - 700 )
Cathy, age 16, buys a 1973 Chevy Camaro from Mark, age 23, for $400. Cathy's indulgent parents, who give her everything she wants, loaned her the money for the car. The reason for Cathy's purchase is that all her friends have cars and she feels left out without one. One week after buying the car, however, Cathy changes her mind and tells Mark that she wants to disaffirm the contract. When Mark comes to pick up the car and give Cathy her money, Cathy changes her mind again, telling Mark, "I'll stick by the deal." However, when Cathy's parents gave her a new car for her 17th birthday, she finally decides to disaffirm once again. Which of the following is correct?
A. Cathy can still disaffirm.
B. Cathy cannot disaffirm because she ratified the contract by saying "I'll stick by the deal."
C. Cathy cannot disaffirm because we have a sale of goods and Article 2 of the Uniform Commercial Code says that 16 is the age of contractual capacity.
D. Cathy cannot disaffirm because the car is a necessary.
Answer:
A. Cathy can still disaffirm.
Explanation:
Since Cathy is a minor, she shouldn't engage in contracts unless they involve basic necessities, e.g. food or shelter, and she can disaffirm a contract anytime before she reaches her 18th birthday. This is the reason why generally sellers require the parents to sign or give their consent to the contracts signed by minors.