The Statute of Frauds Applies To

question 34

Multiple Choice

The statute of frauds applies to:

• A) a contract of indefinite duration that is terminable at will by either party.
• B) a promise made directly to a debtor that the promisor will pay the creditor of the debtor what is owed.
• C) a promise by an executor to pay a claim against the estate out of his or her personal funds.
• D) mutual promises to marry.

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Definitions:

Specific Identification

An inventory valuation method in which the cost of each individual item in inventory is tracked and used to compute cost of goods sold.

Financial Position

A snapshot of a company’s assets, liabilities, and equity at a specific point in time, indicating its economic resources and obligations.

Cost Of Goods

The specific expenses linked to the manufacture of goods a company sells, which involves materials and labor.

Inventory Cost

The total cost associated with holding and acquiring inventory, including purchase prices, delivery charges, and handling fees.