The Only Requirement of a Valid Contract Is That It

question 57

True/False

The only requirement of a valid contract is that it be voluntarily entered into.

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Definitions:

Long-Lived Assets

Assets that provide economic benefits to a business over a prolonged period, typically more than one year, such as buildings, machinery, and equipment.

Fixed Assets

Enduring assets with physical presence utilized in business activities, not foreseen to be liquidated or changed to cash within twelve months.

Depreciable Cost

The difference between a fixed asset’s initial cost and its residual value.

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and any additional expenses necessary to get the asset ready for use.