According to the Rule of _____, If a Promisee's Performance

question 35

Multiple Choice

According to the rule of _____, if a promisee's performance was rendered before the promisor's promise was made, then it can never serve as consideration, even though it may meet the "legal value" part of the test.

• A) past consideration
• B) preexisting duty
• C) forbearance
• D) promissory estoppel

---

Definitions:

Perpetual Inventory Method

An inventory accounting system where updates are made continuously to the inventory records to reflect sales and purchases.

Job Order Cost System

An accounting system used to accumulate costs associated with a specific production batch or job.

Raw Materials Inventory

Raw materials and components that a company holds for future use in the production process to create goods and services.

General Ledger

The comprehensive set of accounts that shows all transactions of a business, serving as the main accounting record.