A Promise That Is Made Without Bargaining for or Accepting

question 9

Multiple Choice

A promise that is made without bargaining for or accepting anything in return is a

• A)promissory estoppel.
• B)covenant.
• C)quantum meruit.
• D)consideration.
• E)gratuitous promise.

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Definitions:

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update account balances before preparing financial statements.

Net Income

The residual financial benefit a company experiences after expenses and taxes are subtracted from its income.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Rent in Advance

Payment made for a rental property or equipment before the period it covers, usually as a security measure or requirement by the landlord.