A Gratuitous Promise Is

question 15

Multiple Choice

A gratuitous promise is:

• A) A legal obligation to do what is promised
• B) A promise where no legal obligation is created
• C) An arrangement that the courts will enforce
• D) A gift that creates contractual obligations

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Definitions:

Financial Activities

Transactions involving the management of a company's capital, including obtaining funds, repaying debts, and distributing dividends.

Non-operating

This term refers to the revenues and expenses that are not related to the core operations of a business, such as investment income or losses.

Noncash Investing

A form of investment where transactions involve assets other than cash, such as property, equipment, or securities.

Financing Activities

Activities involving the flow of cash between a company and its investors or creditors, impacting the company’s capital structure.