Which of the Following Is Correct

question 71

Multiple Choice

Which of the following is correct?

• A)Unearned revenues are considered increases to stockholders' equity.
• B)Working capital is measured as current liabilities minus current assets.
• C)Working capital increases when a company pays the principal on a long-term note.
• D)Unearned revenues will eventually become revenue earneD.Unearned revenues are considered a liability account until the company has provided the services at which time the revenue will be recognized.

Understand bilateral and unilateral contracts through the lens of consideration and promises.

Examine exceptions to the rule requiring consideration in contract formation and enforceability.

Analyze the role of past consideration in contract law and its typical exclusion from forming valid consideration.

Acquire knowledge of special circumstances where courts might intervene in contract agreements, focusing on fairness and legalities involved.

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Definitions:

Echoes

The sounds reflected back to the source by an obstruction, helping in determining the location of objects through echolocation or used in diagnostic tools like ultrasounds.

Barium Enema

A diagnostic imaging procedure that involves filling the colon with a barium solution to improve the visibility of the large intestine on X-rays.

Intravenous Pyelogram

A radiographic imaging technique used to visualize the kidneys, ureters, and bladder using a contrast medium injected into the veins.

Preparation

Preparation involves the process of making something ready for use or consideration, often by gathering materials or information beforehand.