Some Contracts Must Be in Writing and Signed to Be

question 298

Multiple Choice

Some contracts must be in writing and signed to be enforceable. Contracts that are covered by the statute of frauds include:

• A) contracts for the sale of land
• B) promises to pay the debt of another
• C) contracts that take more than a year to perform
• D) all of the specific choices are included
• E) none of the other choices

---

Definitions:

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Bonds Payable

A financial accounting term that refers to the bonds a company has issued that must be repaid at a future date.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability per share of stock.

Acid-test Ratio

A financial metric that measures a company's ability to pay its current liabilities without relying on the sale of inventory.