An Illusory Promise Is

question 19

Multiple Choice

An illusory promise is:

• A)Never sufficient to be consideration because it is considered fraudulent.
• B)Supported by consideration if the acceptance is also illusory.
• C)Usually considered to be sufficient consideration,although some states will consider it to not meet the consideration requirement if the amount and circumstances "shock the conscience" of the court.
• D)One that a party has to perform if he or she chooses to do so.

Understand and apply accounting terminology relevant to sole proprietorships.

Identify and explain the major fields and career opportunities in accounting.

Analyze financial statements and identify missing information.

Understand the importance and procedures of financial statement preparation.

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Definitions:

Bill And Hold Basis

An arrangement where a seller bills a customer for products but holds onto the inventory until it is actually needed or requested by the customer.

Sales Agreement

A detailed contract which outlines the terms of sale of goods or services between two parties.

Earnings Management

The practice of using accounting techniques to produce financial reports that present an overly positive view of a company's business activities and financial position.

Manipulate Earnings

The act of altering financial statements through aggressive accounting practices or outright fraud to present a more favorable view of a company's finances.