A Creditor Who Is Legally Entitled, by a Court's Judgment

question 58

Multiple Choice

A creditor who is legally entitled, by a court's judgment, to collect the amount of the judgment from a debtor is called a(n)

• A) garnishment creditor.
• B) judgment creditor.
• C) creditor.
• D) All of these choices are correct.

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Definitions:

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, because it transfers substantially all the risks and rewards of ownership.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Lease Payments

Periodic payments made by a lessee to a lessor for the use of an asset over a specified lease term.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.