There Are Certain Transactions That Are Enforceable Without Consideration

question 6

Multiple Choice

There are certain transactions that are enforceable without consideration.These include:

• A)promises to pay a debt barred by the statute of limitations.
• B)a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met.
• C)a new promise to perform a voidable obligation that has not previously been avoided.
• D)All of the above.

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Definitions:

Income Summary

An account to which all revenue and expense accounts are transferred at the end of an accounting period to summarize the results of operations for that period.

Normal balance

The side of an account (debit or credit) where increases in the account are recorded, depending on the account type.

Inventory balance

The total value of all goods and materials held by a company intended for sale or production.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.