Under Which of the Following Circumstances Are Parents Liable on a Contract

question 85

Multiple Choice

Under which of the following circumstances are parents liable on a contract entered into by their child?

• A) any contract that the parent was aware of before the child entered into it
• B) all contracts for necessaries of life
• C) contract for necessaries of life that the parents have not provided to the minor
• D) all contracts entered into by the child
• E) any contract that the child did not fully understand when it was entered into

Distinguish between the cost method and equity method of accounting for investments.

Prepare and interpret consolidated financial statements including non-controlling interests.

Calculate and recognize the acquisition differential in business combinations.

Account for investment acquisition, disposals, and the treatment of goodwill in financial statements.