What Is the Distinguishing Characteristic That Makes a Contract a Formal

question 3

Multiple Choice

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

• A) a signature by both parties
• B) the contract being in writing
• C) a legal requirement that the contract be in a specific form
• D) all possible scenarios are addressed in the contract terms

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Definitions:

Net Income Manipulation

The practice of altering financial statements to present a more favorable picture of a company's profits.

Average Cost Formula

A method used to calculate the cost of goods sold and ending inventory by taking the total cost of goods available for sale and dividing it by the total number of units available for sale.

Cost of Goods Sold

The cost of goods sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Specific Identification

An inventory valuation method where each item in inventory is matched with a specific cost.