Which of the Following Must a Person Prove to Rescind

question 47

Multiple Choice

Which of the following must a person prove to rescind a contract if the misrepresentation was innocent?

• A)That the fact was asserted
• B)That the fact was disclosed
• C)That the fact was material
• D)That the fact was ratified

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Definitions:

Cash Payments Journal

A financial journal that tracks all cash outlays of a business, including expenses, asset purchases, and debt repayments.

Cash Purchase

This term refers to a transaction where goods or services are bought and paid for with cash or cash equivalent immediately at the point of sale.

Supplies Recorded

This refers to the accounting practice of recognizing and recording office or operational supplies as expenses when they are used.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or receipts of the business.