Which of the Following Is NOT a Reason That Legally

question 69

Multiple Choice

Which of the following is NOT a reason that legally adopted budgets may not be readily comparable to amounts reported in the GAAP-based financial statements?

• A) Differences in basis of accounting.
• B) Differences in timing.
• C) Differences in reporting entity.
• D) Differences in recognition.

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Definitions:

Void Contract

A legal agreement that is invalid from the outset and has no legal effect, therefore cannot be enforced by law.

Voidable Contract

A legal agreement that may be invalidated or annulled by one or more of the parties involved due to certain conditions.

Privity of Contract

The principle that a contract is a private agreement between the parties who have entered into it, and no one else can claim benefits or be subjected to its obligations.

Voidable Contract

A legal agreement that may be declared invalid by one party due to certain conditions such as misrepresentation or lack of consent.