Sources and Uses of Funds Are Made Equal Through

question 121

Multiple Choice

Sources and uses of funds are made equal through:

• A)A balancing item
• B)Pro forma financial statements
• C)Borrowing cash
• D)Additions to retained earnings

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Definitions:

Adequacy Of Consideration

The fairness of the value exchanged in a contract, though not necessarily equal in monetary terms.

Court

An institution established by the government to settle disputes through a legal process, providing a forum where evidence is presented and legal judgments are made.

Consideration

Something of value (such as goods, services, or money) that is exchanged between parties in a contract, making the agreement legally binding.

Preexisting Duty Rule

A principle in contract law that holds an existing duty does not constitute consideration for a new promise.