If an Agreement Is Partially Legal and Partially Illegal, the

question 4

Multiple Choice

If an agreement is partially legal and partially illegal, the

• A) legal part of the agreement may be enforced if it can be separated from the illegal part.
• B) entire agreement is considered to be illegal.
• C) entire agreement is considered to be legal.
• D) parties to the agreement have a choice of declaring it legal or illegal.

---

Definitions:

Normal Balance

The standard side (debit or credit) on which increases to an account are recorded.

Financial Statement

Reports that summarize the financial condition and operations of a business.

Permanent/Temporary

Conceptual labels for different types of accounts in accounting, with permanent accounts being those that carry their balances into the next accounting period and temporary accounts being closed at the end of each period.