Which of the Following Would Be an Unconditional Promise or Order

question 10

Multiple Choice

Which of the following would be an unconditional promise or order to pay?

• A) "I hereby acknowledge my debt to John Jones."
• B) "I hereby promise to pay $2,000 to John Jones provided the lawn tractor sold meets the contractual specifications."
• C) "Pay to the order of bearer ten dollars."
• D) "IOU fifty dollars."

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Definitions:

Activity Level

A measure of the volume of production or operations, often influencing costs and used for budgeting and performance measurement.

Delivery Costs

Expenses related to transporting goods from one location to another, including shipping, handling, and packaging costs.

Utilities

Services such as electricity, water, and gas that are consumed by businesses and households.

100% Capacity

The maximum level of operational output that a facility can achieve under normal conditions within a specific time frame.