Contracts Are Either Bilateral or Unilateral,depending on What the Offeree

question 13

True/False

Contracts are either bilateral or unilateral,depending on what the offeree must do to accept the offeror's offer.

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Definitions:

Prepaid Insurance

An asset account that represents payments made in advance for insurance services, which are expensed over the period the insurance coverage is applicable.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is exchanged, as opposed to when they are incurred.