List and Briefly Describe the Seven Key Characteristics That Must

question 11

Essay

List and briefly describe the seven key characteristics that must be present for a contract to be enforceable.

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting standards and procedures used in the U.S.

Asset Management Ratios

Financial metrics used to evaluate a company's efficiency in managing its assets to generate sales or revenue.

Common Size Statements

Financial statements that present all items in percentage terms; percentage of total assets for balance sheets and percentage of sales for income statements.

Common-base Year Financial Statement

A financial analysis technique where all values are presented relative to a specified base year, facilitating comparison over time.