(Modify This Question for Your Jurisdiction

question 127

Multiple Choice

(Modify this question for your jurisdiction.) Bill, a college graduate, rented office space under a two-year lease. He needed the space because he contracted with the provincial government to create a program to integrate the various inventories of different government agencies. Bill hired Janet and Fred as full-time programmers for one year. He bought three desks for cash. He bought several laser printers, for which his dad signed as a guarantor. He bought computers from a different seller under a conditional sales contract. Which of these contracts should be evidenced in writing to be enforceable?

• A) The contract with the government, because it will take more than a year to complete
• B) The employment contracts
• C) The contracts for the desks
• D) The dad's guarantee
• E) The lease

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Definitions:

Lump-Sum Cost

A single total amount charged or paid for a group of services, rights, or products, rather than charging for them separately.

Market Values

The current value of an asset or company based on the prices at which its securities are traded in the market.

Journal Entry

The recording of financial transactions into accounting records, or journals, indicating accounts affected, amounts, and the date.

Special Purpose Machine

A special purpose machine is designed to perform a specific manufacturing or production task and is not versatile for other uses.