The Effect of an Implied Contract Is Not the Same

question 10

True/False

The effect of an implied contract is not the same as the effect of an express contract.

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Definitions:

Statements of Financial Accounting Concepts

A series of documents issued by the Financial Accounting Standards Board outlining the objectives and fundamental concepts underlying financial reporting and accounting practices.

General Objective

A broad primary goal or aim that an organization or individual plans to achieve in the long term.

Financial Reporting

The procedure of making known the financial situation of an organization to its management, those who invest in it, and the government.

External Users

Individuals or entities outside a company who use financial information to make decisions about the company, such as investors, creditors, and regulatory bodies.