Contracts and Accounts MCQ PDF

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Contracts and Accounts MCQ

Contracts can be described as self-imposed court-enforceable legal obligations that are not contrary to public policy or law. A contract is an agreement wherein the parties to the contract are bound with an obligation or legal duty to do a certain thing or to refrain from doing a certain thing.

An account refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages, to which changes in value are chronologically recorded with debit and credit entries. These entries, referred to as postings, become part of a book of final entry or ledger.

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