An Agreement Is NOT One of the Requirements of a Valid

question 62

True/False

An agreement is NOT one of the requirements of a valid contract.

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Definitions:

Prepaid Insurance

Payments made for insurance coverage that has not yet been incurred, recorded as an asset on the balance sheet.

Supplies Account

An account used in accounting to track the amount spent on supplies that are used in the business operations.

Accounting System

A systematic process of collecting, recording, classifying, summarizing, and interpreting financial transactions of a business.

Purchases Journal

The purchases journal is an accounting record used to document all purchases of merchandise on credit, tracking the total amount owed to suppliers.