In the Absence of a Contract Complete with Offer, Acceptance

question 14

Multiple Choice

In the absence of a contract complete with offer, acceptance, and consideration, a court may enforce a promise under the principle of promissory estoppel where

• A) the promisee was unaware of the promise.
• B) the promisor created an unconscionable contract.
• C) the promisor induced detrimental reliance on the promise.
• D) performance is impossible.

Compare and contrast short-term and long-term investment strategies.

Gain insights into the consolidation process for parent and subsidiary companies.

Understand how to journalize investment transactions, including purchases, income recognition, and dividends.

Comprehend the treatment and reporting of trading securities on financial statements.

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Definitions:

Future Value

Future value is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Interest Rate

The interest rate applied to a loan, frequently shown as an annual percentage of the loan's outstanding figure to the borrower.

Annuity

A level stream of cash flows for a fixed period of time.

Preferred Stock Dividends

Dividends that are paid to preferred stockholders before any dividends are paid to common stockholders.