Finn Is Currently Enrolled in Law School

question 57

True/False

Finn is currently enrolled in law school.He expects to graduate and take the bar exam in order to be able to practice law.Before Finn becomes a lawyer,he promises to represent his friend,Landon,in a breach of contract action if Landon will pay him 25% of the settlement.Finn negotiates and the case settles for $50,000.Landon refuses to pay Finn.Finn then graduates and attempts to sue Landon.Finn has a legal right to enforce the agreement.

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Definitions:

Non-Current Liabilities

Liabilities not due for settlement within 12 months after the reporting period, often including long-term loans, bonds payable, and lease obligations.

Profit After Tax

The net income earned by a company after all taxes have been deducted from total revenue.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to use and age.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.