CGS Corporation Makes an Investment in 200 Shares of Bama

question 20

Multiple Choice

CGS Corporation makes an investment in 200 shares of Bama Company's common stock. The stock is purchased for $53 a share. The entry for the purchase is:

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Definitions:

Bilateral Contract

A contract involving mutual obligations, where each party is both a promisor and a promisee.

Unilateral Contract

A contract in which one party makes a promise in exchange for the other party's performance of a specific task, rather than a promise in return.

Statute of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

Incompetent

Lacking the necessary ability, legal qualification, or fitness to manage one's own affairs or to handle a particular task or situation.