Adequacy of Consideration Refers to

question 57

Multiple Choice

Adequacy of consideration refers to

• A)"how much" consideration is given.
• B)legally sufficient value in the eyes of the law.
• C)the intangible value to a contracting party of a thing exchanged.
• D)the substantiality of the consideration exchanged.

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Definitions:

Allowance Account

An account used to offset the total amount of accounts receivable due to the likelihood that some accounts will not be collected.

Bad Debts Expense

An expense account that represents the cost of credit sales that are considered to be uncollectible, reducing net income on the income statement.

POSSLQs

An acronym standing for "Persons of Opposite Sex Sharing Living Quarters," used to describe cohabitating couples who are not married.

Persons

Human beings individually considered, often in relation to their social or legal status.