Which of the Following Is True Regarding Whether an Accepted

question 78

Multiple Choice

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

• A) Partial payment is consideration under all circumstances.
• B) Partial payment is not consideration under any circumstances.
• C) Partial payment is consideration if a liquidated debt is involved.
• D) Partial payment is consideration if an unliquidated debt is involved.
• E) Partial payment is consideration if an exception applies to the general rule that partial payment is not consideration for an unliquidated debt.

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Definitions:

Revaluation

An adjustment of the carrying value of an asset or liability to its current fair value.

Consolidated Statement

A financial statement that presents the financial position and results of operations of a parent and its subsidiaries as if they were a single economic entity.

General Reserve

Funds set aside by a company from its profits for general unspecified future needs or to strengthen the company's financial position.

Pre-acquisition

The period or activities related to acquiring assets or another company before the actual transaction is finalized.