If a Contract Is to Be Legally Binding, Both Parties

question 33

True/False

If a contract is to be legally binding, both parties must give consideration.

---

Definitions:

Operating Divisions

Distinct segments within a company, each responsible for certain operational aspects or market services.

Adjustment

A change made to the book value of an asset or liability to accurately reflect its value.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.

FIFO Inventory Reporting

An approach to reporting inventory where the oldest stock is recorded as sold first; reiterates the First-In, First-Out method in financial statements.