On the Same Basis and for the Same Reasons as Minors

question 37

Multiple Choice

On the same basis and for the same reasons as minors, people lacking mental capacity:

• A) cannot disaffirm their contracts.
• B) should always place the other person in status quo.
• C) are liable for the reasonable value of necessaries.
• D) do not need to return any consideration they have received.

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Definitions:

Sales Journal

A specialized journal used to record and track all sales of merchandise on credit, centralizing sales data for easier management.

Accounts Payable Control

A system or method used to manage and track the money owed by the company to its creditors or suppliers.

Subsidiary Ledger

A detailed ledger that contains the details to support a main ledger account, such as accounts receivable or accounts payable.

Accounts Receivable Control

Practices and procedures in place to monitor and manage the amounts owed to a business by its customers for goods or services delivered on credit.