Credits

question 197

Multiple Choice

Credits

• A) decrease both assets and liabilities.
• B) decrease assets and increase liabilities.
• C) increase both assets and liabilities.
• D) increase assets and decrease liabilities.

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Definitions:

Creditor

A person to whom a debt or legal obligation is owed and who has the right to enforce payment of that debt or obligation.

Consideration

Something of value (such as money, goods, or services) that is exchanged between parties in a contract, making the agreement legally binding.

Output Contract

An agreement in which a seller agrees to sell all the production to a particular buyer, who agrees to purchase it.

Requirements Contract

A contract in which one party agrees to supply as much of a good or service as the other party needs during a specified period.