Contra Proferentem Means

question 12

Multiple Choice

Contra Proferentem means:

• A)where there is an ambiguity in a contract term, that term is interpreted against the one who did not draft the contract
• B)the contract is against public policy
• C)where there is an ambiguity in a contract term, that term is interpreted against the one who drafted the contract
• D)the courts prefer a contract to be in writing, not done orally
• E)the contract is for an illegal purpose

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the books for the next period.

Depreciation Expense

This is an accounting method used to allocate the cost of a tangible asset over its useful life.

Salaries and Wages Expense

The total cost incurred by an employer for employee compensation, including both salaries and hourly wages.

Temporary Account

An account that is closed at the end of each accounting period and its balances transferred to permanent accounts; examples include revenues, expenses, and dividends accounts.