Which of the Following Would Be an Unconditional Promise or Order

question 11

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:

LIFO

"Last In, First Out," an inventory valuation method where goods purchased last are the first to be used or sold.

Perpetual Inventory System

A method of inventory management that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Ending Inventory

The total value of all goods still available for sale at the end of an accounting period.

FOB Destination

A shipping term indicating that the seller bears the shipping costs and retains ownership of the goods until they are delivered to the buyer's location.