In Order to Be Legally Binding, a Contract Must Be

question 40

True/False

In order to be legally binding, a contract must be a written agreement between two or more parties.

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Definitions:

FIFO

"First In, First Out," a method used in inventory management and accounting where the goods first added to inventory are the first to be sold.

Inventory Cost Formula

The method used to determine the cost of goods available for sale or the cost of goods sold, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or Average Cost.

Prior Writedown

A reduction in the book value of an asset when its market value falls below its current book value, previously accounted for in financial statements.