Which of the Following Is NOT One of the Three

question 11

Multiple Choice

Which of the following is NOT one of the three ways to amend a written contract?

• A) write and sign an amendment document.
• B) verbally agreeing to the changes and shaking hands on the deal.
• C) crossing out the mistakes and writing in the corrections.
• D) writing a totally new contract with the correct provisions.

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Definitions:

Cash

Liquid assets held by a firm, used to meet short-term obligations or for transactions; the most basic form of company resources.

Cost Model

An accounting method where an asset is valued based on the historical cost minus any accumulated depreciation and impairment costs rather than its current market value.

Initial Recognition

refers to the first time an entity records an asset, liability, equity, income, or expense based on its recognition criteria in the accounting records, establishing its inclusion in the financial statements.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against an asset over its life up to a specific date.