Delta Company Has Total Assets of $400,000 and Total Liabilities $$580,000

question 63

True/False

Delta Company has total assets of $400,000 and total liabilities of $180,000, Delta's equity must therefore be $$580,000.

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Definitions:

Void Contracts

Agreements that are not legally enforceable from the outset due to the presence of certain defects in the contract.

Minor

An individual under the age of legal adulthood, typically seen as below the age of 18 in most jurisdictions.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable.

Oral Contract

An agreement between parties that is spoken and not formally recorded in written form, yet is legally binding.