Which of the Following Is Outside the Scope of the Statute

question 30

Multiple Choice

Which of the following is outside the scope of the Statute of Frauds?

• A) A promise to be secondarily liable for the debt of another.
• B) A promise to be primarily liable for the debt of another.
• C) Contracts concerning interests in land.
• D) A promise to pay damages for the injury caused by the tort of another.
• E) An agreement not to be performed within a year.

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Definitions:

Direct Method

A cash flow statement preparation approach that lists major cash receipts and payments during the period.

Bad Debts Recovered

Previously written off debts that have unexpectedly been collected.

Allowance Method

An accounting technique used to estimate and account for bad debts, allowing companies to anticipate uncollectible accounts receivables.

Bad Debts Expense

An expense account reflecting the value of sales that were made on credit and are unlikely to be collected.