Which of the Following Is True About Persons Who Are

question 23

Multiple Choice

Which of the following is true about persons who are mentally ill?

• A) A contract made by a person who is mentally ill is still non-voidable by the person after regaining sanity.
• B) If a guardian has been legally appointed for a mentally ill person, any contract made by the latter is valid and can be ratified by the ward.
• C) If a contract is for a necessity, the other party to the contract cannot claim against the estate of the one who is mentally ill.
• D) In a contract for necessity, if the contract is fair and the other party has no knowledge of the mental illness, the court does not have the power to order relief.
• E) In a contract for necessity, only if a mental illness impairs the competence of the person in the particular transaction can the contract be avoided.

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Definitions:

Sliding

A term often used in various contexts to describe a gradual, steady movement or shift from one position or condition to another.

Accounting Cycle

A sequence of steps undertaken in a specific order by businesses to handle their financial transactions from their inception to their inclusion in the financial statements.

Recording Journal Entries

The process of documenting all financial transactions of a business in the double-entry accounting system through debits and credits.

Posting

The act of recording financial transactions in the appropriate ledger accounts as part of the accounting process.