As a General Rule,most States Will Not Allow a Minor

question 20

Multiple Choice

As a general rule,most states will not allow a minor to disaffirm contracts for which of the following?

• A) Life insurance, health insurance, and psychological counseling
• B) Health insurance and psychological counseling, but not life insurance
• C) Psychological counseling, but not health insurance or life insurance
• D) Health insurance, but not life insurance or psychological counseling
• E) Education loan contracts and psychological counseling, but not life insurance or health insurance

---

Definitions:

Accounting Principle

Fundamental guidelines or rules that govern financial accounting practices.

Cost Or Market

An accounting method used to value inventory or securities at the lower of either its original cost or its market value as of the reporting date.

LIFO Reserve

The difference between the cost of inventory calculated under the Last In, First Out method and the FIFO (First In, First Out) method.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.