John Owes Jill $2000

question 61

Multiple Choice

John owes Jill $2000.John informs Jill that he is unable to pay the debt.Jill agrees to accept $1500 and to waive the rest of the debt.Which of the following will not prevent Jill from enforcing payment of the balance of the debt?

• A)At Jill's request John pays the equivalent of $1500 in US currency even though he originally agreed to repay the $2000 in Australian dollars.
• B)At Jill's request John accompanies the payment of $1500 with the performance of a service.
• C)John pays the $1000 earlier than the agreed date for repayment.
• D)John's financial status worsens and he is evicted from his rental property.

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Definitions:

Residual Dividend Policy

A strategy where companies pay dividends from the remaining earnings after all operational and growth expenses are covered.

After-Tax Earnings

Net income of a business after all taxes have been deducted, indicating the actual profit that remains for shareholders.

Retention Ratio

The proportion of net income that is retained in the company rather than distributed to shareholders as dividends, indicating how much money is reinvested in the business.

Market Price

The rate at which a service or asset can presently be acquired or disposed of in the market.