Which of the Following Statements Is True

question 21

Multiple Choice

Which of the following statements is true?

• A) No elimination entries are required on a worksheet as a result of Operating, Direct-Financing, and Sales-Type leases.
• B) No elimination entries are required on a worksheet as a result of Direct-Financing and Sales-Type leases.
• C) No elimination entries are required on a worksheet as a result of Operating leases.
• D) All the preceding are false.

---

Definitions:

Unilateral Mistake

The result of an error by one party about a material fact, that is, one that is important in the context of a particular contract.

Genuine Assent

An agreement to enter into a contract that is not clouded by factors such as fraud, duress, or mistake, indicating true and voluntary agreement.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.

Undue Influence

The situation in which one person has taken advantage of his or her dominant position in a relationship to persuade the other person unduly to the extent that the dominant person’s persuasive efforts have interfered with the other person’s ability to make his or her own decision.