Consideration Can Be a Promise for Another Promise

question 82

True/False

Consideration can be a promise for another promise.

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, reflecting the liquidity available for shareholders.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in the form of cash.

Direct Method

A way of preparing cash flow statements where actual cash inflows and outflows from operational activities are listed.

Selling Expenses

Costs incurred directly and indirectly in making sales, including commissions, advertising, and salaries of sales staff.