A Firm Retired a Long-Term Note by In-Substance Defeasance

question 64

Multiple Choice

A firm retired a long-term note by in-substance defeasance.This means that:

• A)the creditors have been paid.
• B)the debtor has been released of its legal responsibility for all remaining debt payments.
• C)the debt is shown as an offset against the assets used to retire the debt, in the debtor's balance sheet.
• D)there is only a remote chance that the debtor will be required to make further payments on the liability.
• E)the debtor will continue to recognize interest expense on the debt but will make no more payments.

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Definitions:

Indian Culture

The diverse and rich traditions, languages, art, architecture, music, and customs of the Native American peoples.

French And Indians

Often relates to the French and Indian War (1754-1763) in North America where France allied with various Native American tribes against Britain.

Champlain

Samuel de Champlain, a French explorer known for founding New France and Quebec City in the early 17th century.

Quebec City

The capital city of the Canadian province of Quebec, known for its rich history and French heritage.