The Three Elements Required for a Contract to Be Legally

question 56

True/False

The three elements required for a contract to be legally binding are: offer, acceptance, and written documentation.

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Definitions:

FIFO

An inventory valuation method that assumes goods are sold in the order they are acquired, standing for "First In, First Out."

LIFO

LIFO stands for "Last In, First Out," a method used in inventory management and accounting where the most recently produced items are recorded as sold first.

Income Tax Expense

The cost associated with income taxes due to a government, calculated based on taxable income.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in relation to its operating, investing, and financing activities.