Which of the Following Is NOT One of the Pre-Contractual

question 5

Multiple Choice

Which of the following is NOT one of the pre-contractual requirements for a binding credit agreement?

• A) The credit contract must clearly state the purpose for which the credit is provided.
• B) The credit provider must give the borrower a statement of financial details.
• C) The borrower must be given a statement of their rights and obligations.
• D) The credit contract must be in writing, signed by the borrower and the credit provider.

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Definitions:

Financial Reporting

The practice of creating reports that reveal the financial condition of a company to its management, investors, and governmental bodies.

LIFO Inventory Method

An accounting method that assumes the most recently produced items are sold first and uses those costs for accounting.

Increasing Unit Costs

Refers to a situation where the expenses associated with producing each additional unit of a product or service rise over time.

Lower Income Taxes

Strategies or circumstances that result in a reduction of the amount of income taxes a person or company owes.