A Written Promise Not to Sue Is Commonly Called A

question 27

Multiple Choice

A written promise not to sue is commonly called a:

• A)consideration.
• B)forbearance.
• C)detriment.
• D)release.

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Definitions:

Lending Money

The act of giving money to another party with the expectation that the money will be paid back, typically with interest.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Investing Activities

Part of a company's cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Gain

Gain refers to an increase in economic benefits or inflow of assets that result in an increase in equity, not related to contributions from equity participants.