A Contract Will Not Be Enforceable Where a Court Finds

question 5

Multiple Choice

A contract will not be enforceable where a court finds a 'lack of formality', that is:

• A)The contract does not meet the necessary formal requirements, for example it is not in writing.
• B)Either the purpose of the contract or the performance of the contract is illegal.
• C)One of the parties lacks the legal capacity to enter into a contract.
• D)One of the parties has not entered into the contract willingly.

Grasp the accounting treatment and rationale behind stock splits.

Comprehend the capitalization of retained earnings for both small and large stock dividends.

Understand the various types of preferred stock and their features regarding dividends.

Recognize the accounting for the issuance of common and preferred stock.

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Definitions:

Actual Performance

The real, observed outcomes or results of a process, person, or organization's efforts, compared against planned or expected performance.

Australian Accounting Standards

The principles and rules governing financial reporting and accounting practices in Australia.

Internal Managers

Individuals within an organization responsible for directing and overseeing the operations and strategies of specific departments or the entire business.

External Parties

Individuals or organizations outside of a company who have an interest or stake in the business's performance, including suppliers, customers, regulators, and the general public.