When a Contract Appears to Be Good and Binding But

question 63

Multiple Choice

When a contract appears to be good and binding but, in fact, one of the parties may legally reject it, the contract is said to be

• A) unenforceable.
• B) valid.
• C) void.
• D) voidable.

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Definitions:

Incorrectly Recorded

Refers to entries or transactions that have been recorded inaccurately in the accounting records, requiring correction.

Cash Balance

The amount of money a company has in its cash accounts, including currency, coins, and balances in checking and savings accounts.

Allowance for Doubtful Accounts

An adjusted estimation for the amount of receivables that may not be collectible.

Accounts Receivable

Funds that are due to a company from its clients for products or services delivered but for which payment has not been received.