Because Their Contracts Are _____________, Minors Have the Right, Until

question 58

Multiple Choice

Because their contracts are _____________, minors have the right, until a reasonable time after reaching the age of majority, to __________, or avoid, their contracts.

• A) Void; disaffirm
• B) Void; affirm
• C) Void; resist
• D) Voidable; disaffirm
• E) Voidable; affirm

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Definitions:

Capital Lease Disclosures

Financial reporting requirements that detail the specifics of lease agreements classified as capital leases, including future payment obligations and interest expenses.

Lessees

Parties that obtain the right to use an asset for a specific period in exchange for payment, under a lease agreement.

Implicit Interest Rate

The rate that equates the present value of lease payments and any unguaranteed residual value to the fair value of the leased asset.

Income Report

An income report, commonly known as an income statement, is a financial document that shows a company's revenue, expenses, and net income over a specific period.