In Most Cases Dealing with the Issue of Consideration,courts

question 111

Multiple Choice

In most cases dealing with the issue of consideration,courts:

• A)still consider a promise binding even if made without a consideration.
• B)do not evaluate the adequacy of the consideration.
• C)consider offers of "love and affection" to be valuable consideration.
• D)weigh the value of the consideration in ruling on the validity of the contract.

Comprehend the differences between direct and indirect methods for reporting cash flows from operating activities.

Recognize the impact of accrual accounting on the measurement of earnings and cash flows.

Identify common adjustments made under the indirect method for cash flow reporting.

Distinguish between the requirements of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP) regarding cash flow reporting.

---

Definitions:

Inefficient Market

A market in which asset prices do not always accurately reflect all available information, potentially allowing investors to earn abnormal returns.

Maurice Kendall

Maurice Kendall was a British statistician known for his significant contributions to the field of statistics, including work in time series analysis and the development of the Kendall rank correlation coefficient.

Stock Returns

The gain or loss made from trading a stock, usually measured as the change in capital plus dividends in a given period.

EMH

The Efficient Market Hypothesis, a theory stating that stock prices fully reflect all available information, making it impossible to consistently achieve higher returns.