What Is the Distinguishing Characteristic That Makes a Contract a Formal

question 91

Multiple Choice

What is the distinguishing characteristic that makes a contract a formal contract?

• A) it requires a signature by both parties
• B) it requires the contract to be orally agreed upon
• C) it requires a special form or method of creation
• D) it addresses all possible scenarios in the contract

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Definitions:

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.

Income Statement

A financial statement showing a company's income, expenses, and profits over a specified period, typically a quarter or year.