Drawers of Checks May Disclaim Contractual Liability by Using the Words

question 35

True/False

Drawers of checks may disclaim contractual liability by using the words "without recourse."

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Definitions:

Valuation Allowance

An accounting practice used to offset a deferred tax asset on the balance sheet if it is likely that some portion or all of the asset may not be realized.

Deferred Tax Asset

An accounting term for items that will reduce future tax liability due to deductible temporary differences and carryforwards.

Warranty Costs

Expenses associated with repairing or replacing products under warranty.

Installment Sales Method

An accounting technique used to recognize revenue from sales when payments are received in installments over a period of time.