Which of the Following Is True with Regard to Contracts

question 52

Multiple Choice

Which of the following is true with regard to contracts?

• A) A contract is an agreement that has no scope for bargaining.
• B) In a contract both parties seek assurances.
• C) Contracts are rarely entered into to induce reliance.
• D) Contracts do not cover promises to take particular actions in the future.

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Definitions:

Historical Cost Principle

An accounting principle requiring all financial items to be recorded based upon original cost, without adjusting for inflation or market value.

Primary Quality

Fundamental or inherent characteristics that determine the value or usefulness of something.

Model of Business Reporting

A framework or standard outlining the principles and requirements for presenting financial and non-financial information about a company's performance and position.

Financial Data

Information about financial transactions, assets, liabilities, revenues, and expenses of a business or individual.