Which of the Following Is True of the Ratification of a Contract

question 16

Multiple Choice

Which of the following is true of the ratification of a contract by a minor?

• A) A minor can only ratify a contract after reaching the age of majority.
• B) A minor cannot ratify a contract that falls under the necessaries of life doctrine.
• C) A minor can ratify a contract during the period of minority if he or she so wishes.
• D) A minor can ratify a contract under the guidance of a parent or legal guardian.

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Definitions:

Salaries Payable

A liability account representing the amounts owed to employees for work performed but not yet paid.

Net Income

The amount of money left after all expenses have been deducted from total revenues.

Prepaid Expense

Expenses paid in advance by a company for goods or services to be used at a future date, recorded as an asset.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.