Angie,a Minor,wants to Avoid a Contract She Made with Cumberland

question 25

Multiple Choice

Angie,a minor,wants to avoid a contract she made with Cumberland Cycles.She may disaffirm the contract by:

• A) notifying Cumberland orally that she will not honor the agreement.
• B) filing a lawsuit to have a court formally cancel the contract.
• C) just refusing to perform her obligations under the contract.
• D) All of the answers are correct.

---

Definitions:

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.

Direct Method

A cash flow statement presentation that lists actual cash inflows and outflows from operating activities.

FASB

The Financial Accounting Standards Board (FASB) is an organization responsible for establishing and improving financial accounting standards in the United States.

Net Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.