The Acceptance of an Offer to Form a Contract May

question 367

True/False

The acceptance of an offer to form a contract may be communicated in any "reasonable" way and be effective, in most instances.

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Definitions:

Insurance Policy

A contract between an insurer and policyholder specifying the terms and conditions under which the insurer agrees to compensate the policyholder for specified losses.

Paid

Refers to the status of an account or invoice on which the due amount has been settled.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time, illustrating the company's financial performance.