A Person Who Is Mentally Incapacitated Can Create

question 7

Multiple Choice

A person who is mentally incapacitated can create

• A)a void contract.
• B)a voidable contract.
• C)all of the above.
• D)none of the above.

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Definitions:

Cash Account

A financial account that records cash transactions including receipts and payments.

Credit

A financial record that raises a liability or equity account, or reduces an asset or expenditure account.

Debit

A debit is an accounting entry that results in either an increase in assets or expenses or a decrease in liabilities or equity on a company's balance sheet.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owner's claim on the business assets.