Which of the Following Does the One-Year Rule State

question 24

Multiple Choice

Which of the following does the one-year rule state?

• A) Every contract in writing is subject to yearly renewal.
• B) The terms of a written contract can be modified within a year of its formation.
• C) A contract that cannot be performed on its own terms within a year should be in writing.
• D) Valid contracts cannot be rescinded by either party until a year after their formation.

Distinguish between fixed costs in master and flexible budgets.

Calculate and understand the implications of Return on Investment (ROI) for various business decisions.

Develop the ability to prepare and analyze performance reports for profit centers.

Identify and calculate controllable and non-controllable costs in a budget.

---

Definitions:

Fiscal Period

A set timeframe used for accounting purposes, during which a company will record and report financial performance, typically a quarter or year.

Total Cost of Borrowing

This is the overall amount paid by a borrower over the life of a loan, including interest, fees, and any other charges.

Issued at a Discount

When bonds or other securities are sold for less than their face value upon issuance.

Issued at a Premium

Refers to the situation where securities, such as bonds, are sold for a price above their face value.