A Third-Party Beneficiary

question 34

Multiple Choice

A third-party beneficiary:

• A) may be obligated to pay for services rendered.
• B) may bring suit on and enforce the contract.
• C) must consent to the contract.
• D) must be identified by name.

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Definitions:

Debit

An accounting entry that represents an increase in assets or expenses, or a decrease in liabilities or equity, recorded on the left side of the accounting ledger.

Credit

The provision of goods, services, or money with the expectation of future payment, or an entry in accounting that increases liabilities and decreases assets.

Transactions

Financial events that involve the transfer of value between two parties, recording in accounting records.

Source Document

An original record or document that contains the details of a business transaction, used as the basis for recording and validating financial data.