Which of the Following Is True About a Contract

question 8

Multiple Choice

Which of the following is true about a contract?

• A) It need not necessarily be an agreement.
• B) It need not necessarily be entered into by parties having capacity to contract.
• C) It must be voluntarily entered into, and it is to perform a legal act.
• D) It must always be supported by consideration.

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Definitions:

Cash Payments

Money transactions made to settle obligations or purchases.

CPAs

Certified Public Accountants, professionals who have met the education and licensing requirements to offer accounting services to the public, including audits and financial planning.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and statement of cash flows.

Expressing Opinion

The act of stating beliefs or judgments about something, commonly found in audits where an auditor states the fairness of financial statements.