Which of the Following Is Enforceable Without Consideration

question 79

Multiple Choice

Which of the following is enforceable without consideration?

• A) A new promise to pay a debt barred by the statute of limitations.
• B) An illusory promise.
• C) Under the common law,a promise made to satisfy a preexisting moral obligation.
• D) A promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene.

Identify the risks and limitations associated with internal control systems, including human errors and collusion.

Understand the classification and management of cash equivalents and their impact on a company's liquidity.

Understand the primary components of an internal control system and differentiate between control activities.

Recognize the classification and treatment of cash and cash equivalents in financial reporting.

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Definitions:

Capital Contributions

Funds or assets introduced into a firm or partnership by its owners or partners to support the organization's operations, finance its activities, or expand its assets.

Transferable Interests

Transferable interests are the portions of ownership in a business entity that can be transferred or sold from one owner to another.

Limited Partners

Limited partners are investors in a partnership with limited liability to the debts of the partnership, and whose involvement in management is restricted by law.

General Partner

An owner of a partnership who has unlimited personal liability for the debts and obligations of the partnership.