Implied Contracts Can Occur When a Potential Employer Makes a Verbal

question 13

True/False

Implied contracts can occur when a potential employer makes a verbal promise such as "if you do a great job, you will have a job for life" to an employee or an employee handbook or manual suggests a type of contract.

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Definitions:

Advertising Expense

The cost incurred to promote products or services to potential customers.

Closing Entries

Accounting journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made and posted to the ledger, reflecting the company's financial position more accurately.

Owner's Capital

The total equity claimed by the owner of a sole proprietorship or partnership, reflecting the residual assets of the business after liabilities.