It Is Essential to Determine Whether an Agreement Exists Because

question 29

Multiple Choice

It is essential to determine whether an agreement exists because:

• A)a contract comes into existence once agreement is reached.
• B)the terms and conditions agreed to create legally enforceable rights.
• C)it helps to determine the time and place of the contract.
• D)all of the above.

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Definitions:

Interest Payable

The amount of interest expense that has been incurred and is owed but has not yet been paid as of the balance sheet date.

Interest Expense

An entity's expense from acquiring funds through loans over a specific time frame.

Notes Payable

Written agreements where a borrower agrees to pay back a sum of money to a lender by a certain date.

Cash

An asset account representing currency or currency equivalents that can be accessed immediately or near-immediately.