Which of the Following Statements Is True About a Promise

question 83

Multiple Choice

Which of the following statements is true about a promise to make a gift?

• A) Upon delivery of the item, a true gift can be enforceable as a property transfer.
• B) Promissory estoppel prevents a gift from being enforceable.
• C) A promise to make a gift is binding as a contract as it usually supports the bargain.
• D) A promise to make a gift becomes an option when it has a clause in the agreement that revokes the gift.
• E) Insignificant consideration in return for a great one raises concerns that the exchange is actually not a gift.

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Definitions:

Processing Department

A specific department in a manufacturing operation where a set of processes or operations are performed on materials to convert them into finished goods.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the costs necessary to convert raw materials into finished goods.

Cost Per Equivalent Unit

A calculation used in process costing that determines the cost assigned to individual units of production, considering units that are partially completed.

Processing Department

A unit within a manufacturing facility where a specific type of production activity or process is carried out, such as assembly or painting.