Which of the Following Is True If a Debtor Engaged

question 84

Multiple Choice

Which of the following is true if a debtor engaged in fraud in order to convince a surety or guarantor to enter into a contract with a third party?

• A) Because the third party is innocent, neither the surety nor the guarantor is released from liability.
• B) The surety is released from liability, but the guarantor is not.
• C) The guarantor is released from liability, but the surety is not.
• D) Both the guarantor and the surety will likely be released from liability.
• E) Both the guarantor and the surety will likely be released from liability on interest due on the contract, but not for the principle amount.

Understand the concepts of net cash provided by or used in operating, investing, and financing activities.

Ability to calculate and interpret free cash flow.

Understand the impact of changes in balance sheet accounts on the cash flow statement.

Recognize correct treatments of specific items in the operating activities section of the cash flow statement.

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Definitions:

Compound Interest CSB

The calculation of interest on a Canada Savings Bond (CSB) where interest earned also earns interest over time.

Redemption Value

The value at which a bond or other debt instrument can be redeemed before its maturity by the issuer.

Compound-Interest GIC

A Guaranteed Investment Certificate (GIC) where interest is compounded periodically and added to the principal balance, leading to interest earnings on interest.

Maturity Value

The amount that will be payable to the holder of a financial instrument at the date of its maturity, incorporating the principal and any interest earned.