Contract Law Applies To

question 40

Multiple Choice

Contract law applies to:

• A) only formally written documents.
• B) documents that use the word 'contract'.
• C) private agreements, making them legally enforceable.
• D) all business dealing, covering those that are against public policy.
• E) only oral agreements and contracts.

---

Definitions:

Credits

Entries in accounting that increase liabilities or equity or decrease an asset or expense.

Transaction Recording Process

The systematic approach of documenting financial transactions in the accounting records of a business, ensuring accuracy and completeness.

Analyze

The process of examining data or information to break it down into its components, understand its structure, and identify patterns or relationships.

Journal

An accounting record where all transactions are initially recorded, chronologically, before they are transferred to ledger accounts.