Promises to Make Charitable Subscriptions

question 44

Multiple Choice

Promises to make charitable subscriptions

• A) are exempted from the necessity of consideration.
• B) are not legally enforceable.
• C) are based on promissory estoppel.
• D) may not be valid unless large sums of money are involved.

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Definitions:

Government Organizations

Entities established and funded by the government to perform specific functions or provide services aligned with government policies.

Impairment Testing

The process of evaluating assets for indications of reduced recoverability, assessing whether their carrying value exceeds their recoverable amount.

Tangible Capital Assets

physical assets owned by a business that are used in its operations and have a useful life extending beyond a single accounting period.

Future Cash Flows

the projected cash receipts and payments a business expects to incur over a future period, crucial for financial modeling and valuation.