Only One Party Entering into a Contract Must Possess Characteristics

question 69

True/False

Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.

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Definitions:

Financial Leverage

Financial leverage describes the use of borrowed funds to increase the potential return of an investment.

Liabilities

Financial obligations or debts owed by a company to creditors or suppliers, which must be settled over time.

Posting

the process of transferring journal entries to respective accounts in the ledger.

Ledger

A book or electronic record used to record all of a company's financial transactions in chronological order.