Which of the Following Statements Regarding Contracts for Necessaries Entered

question 63

Multiple Choice

Which of the following statements regarding contracts for necessaries entered into by minors is false?

• A)A contract for a necessary is a contract that supplies the minor with the basic necessities of life.
• B)The purpose of holding minors liable for necessaries is to ensure that minors are able to obtain the basic necessities of life when their parents will not provide them.
• C)Whether something is considered a necessary is related to whether the minor's parents are willing to provide the item in question for the minor.
• D)A minor can disaffirm a contract for necessaries,but the minor will still be held liable for the reasonable value of the necessary.
• E)A minor cannot disaffirm contracts for necessaries.

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Definitions:

Fair Presentation

An accounting principle that financial statements should be honest, complete, and conform to accepted standards, providing a true and accurate view of an entity's financial position.

Unbiased

Free from prejudice or favoritism, ensuring fair, impartial, and objective decision-making or presentation.

Changes in Equity

Adjustments in a company's equity over a period due to earnings, losses, dividends, and other capital changes.