Which of the Following Is an Example of an Implied

question 24

Multiple Choice

Which of the following is an example of an implied contract?

• A)Alberto visits his physician to be treated for a sinus infection.They do not discuss payment,but the following week Alberto receives a bill from his physician for services rendered.
• B)Midori offers to sell a necklace to Patricia for $50;Patricia agrees to pay $50 for the necklace.
• C)Amy tells her neighbor Tom,"If you rake up my leaves,I'll bake you a batch of brownies." Tom accepts the offer.
• D)Miguel wants to purchase his first home.When he found the perfect place,he signed a contract for purchase and closed on the home within a month.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Sarbanes-Oxley

A U.S. law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, also known as the Sarbanes-Oxley Act.

Publicly Held Companies

Companies whose ownership is distributed among the general public through publicly traded shares or stocks.

Internal Control Environment

The overall attitude, awareness, and actions of directors, management, and personnel regarding internal controls and their importance in the organization.