A Contract in Which One or More of the Parties

question 27

Multiple Choice

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n) :

• A)void contract.
• B)valid contract.
• C)voidable contract.
• D)unenforceable contract.

Recognize the role of expected rate of return in investment choices and how it compares with interest rates.

Learn how certainty and uncertainty in the market impact investment spending.

Know how to calculate the future and present values of money based on current interest rates.

Define investment in economic terms and distinguish it from general financial transactions.

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, including the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.

Compensated Absences

Employee benefits representing paid time off, such as vacation, sickness, or personal leave, accrued by employees.

Vacation Pay

A benefit offered by employers that compensates employees while they are on leave from work for a vacation.

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act, which fund both Social Security and Medicare, requiring contributions from both employees and employers.