Any Meeting of the Minds Resulting in Mutual Assent to Do

question 52

True/False

Any meeting of the minds resulting in mutual assent to do or refrain from doing something is called a contract.

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Definitions:

Sales Tax

A government-imposed charge on the sale of goods and services.

General Journal Entries

The initial records of financial transactions, entered in the general journal, before they are posted to specific accounts in the general ledger.

Terms of Sale

The conditions under which a seller agrees to sell and a buyer agrees to buy, including payment terms, delivery time, and warranties.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including the repayment period, discount for early payment, and late penalty.