Which of the Following Is NOT a Necessary Component of a Legal

question 24

Multiple Choice

Which of the following is NOT a necessary component of a legal contract?

• A) An offer or action that starts the process of forming a contract
• B) A signed document outlining the terms of the agreement
• C) The agreement of both parties to enter the contract by doing something specific
• D) The exchange between the parties of something of value

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Definitions:

Revenue Account

An account that records the income earned from normal business operations, such as sales of goods or services.

Liability Account

An account recording a company's debts or obligations arising from past transactions or events.

Posting

Posting is the process of recording financial transactions from the journal to the respective ledger accounts, providing a detailed account of all business operations.

Journal

A detailed record where all financial transactions of a business are initially recorded before summarizing them into accounts.