If the Parties to a Contract Agree to Undo the Agreement

question 47

Multiple Choice

If the parties to a contract agree to undo the agreement and return any consideration involved, the contract is discharged by:

• A) mutual cancellation
• B) mutual rescission.
• C) novation
• D) accord and satisfaction

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Definitions:

Debits And Credits

Fundamental accounting concepts that are used in double-entry bookkeeping, where debits must equal credits in every transaction.

Journal Entries

Accounting records that document all financial transactions in the order they occur, ensuring accurate tracking of business operations.

Posting

The process of recording financial transactions in the ledger of an accounting system.

Trial Balance

An accounting worksheet that sums up the balances from all ledgers into equal debit and credit column figures.