A _____ Is an Economic Event That Under Generally Accepted

question 55

Multiple Choice

A _____ is an economic event that under generally accepted accounting principles affects an element of the financial statements and must be recorded.

• A) framework
• B) control
• C) set of rules
• D) transaction

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Definitions:

Illegal Agreement

A contract or agreement that is not enforceable by law because it involves activities that are against the law or public policy.

Voidable

Voidable refers to a legal contract or transaction that is valid and enforceable on the surface but may be declared void by one of the parties due to certain defects or conditions.

Overturned

Refers to a decision, typically in a legal context, that has been reversed or nullified by a higher authority or court.

Illegal Subject Matter

Refers to contracts that have an object which is against the law or public policy and hence unenforceable.