If an Agreement Imposes a Legal Obligation, Then It Is

question 17

Multiple Choice

If an agreement imposes a legal obligation, then it is a(n) :

• A) enforceable contract.
• B) unenforceable contract.
• C) a negated concurrence.
• D) a void contract.

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Definitions:

Current Liabilities

Current liabilities are financial obligations a company owes and is expected to pay within a year.

Working Capital

The excess of the current assets of a business over its current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or used up within one year or within the business's operating cycle.

Horizontal Analysis

A method used in financial analysis to compare historical financial information over a series of reporting periods.