Which of the Following Occurs When a Person Reaches the Age

question 70

Multiple Choice

Which of the following occurs when a person reaches the age of majority and states,either orally or in writing,that he or she intends to be bound by the contract entered in to as a minor?

• A)Implied novation
• B)Implied ratification
• C)Express ratification
• D)Express novation
• E)Express ratification if the statement is in writing but nothing if the statement is only oral

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Definitions:

Serial Bond

A serial bond is a type of bond that matures in installments over a period rather than in a single lump-sum at the end of its term.

Fiscal Year

An accounting period of 12 months used by organizations for financial reporting and budgeting, distinct from the calendar year.

Premium Amortization

The process of gradually reducing the premium paid over the par value of a bond or other financial instrument over its life.

Straight-Line Method

A depreciation technique in which an asset loses equal value annually over its useful life.