A Guarantor Is a Person Who Agrees to Pay the Debts

question 16

True/False

A guarantor is a person who agrees to pay the debts of another person but only if that person dies.

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Definitions:

Historical Cost

The original monetary value of an asset or transaction, without adjustment for inflation or other external factors over time.

Replacement Cost

The cost to replace an asset with another of similar function and quality at current prices.

Net Realizable Value

The estimated selling price of goods, minus the estimated cost of completion and any costs necessary to make the sale.

Retained Earnings

Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.