The Code Empowers Courts to Deal Fairly with a Contract

question 32

Multiple Choice

The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of:

• A)good faith.
• B)unconscionable contract.
• C)quasi-contract.
• D)implied contract.

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Definitions:

Corporations

Legal entities that are separate and distinct from their owners, established to conduct business, earn profit, and be endowed with legal rights.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accruals and deferrals not yet recorded through daily transactions.

Closing Entries

Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner’s equity account, Owner’s Capital.

Correcting Entries

Entries to correct errors made in recording transactions.