Which of the Following Is True Regarding an Accord and Satisfaction

question 16

Multiple Choice

Which of the following is true regarding an accord and satisfaction?

• A) When amounts agreed upon are paid, the debt is fully discharged.
• B) When amounts agreed upon are paid, the debt is fully discharged except for any late charges due on the initial indebtedness.
• C) When amounts agreed upon are paid, the debt is fully discharged except for any interest due on the initial indebtedness.
• D) When amounts agreed upon are paid, the debt is fully discharged except for any late charges and for any interest due on the initial indebtedness.
• E) When amounts agreed upon are paid, the debt is fully discharged except for any late charges or interest due on the initial indebtedness, or attorney fees of the creditor that are due.

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Definitions:

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Accumulated Depreciation

The total depreciation of a fixed asset accumulated up to a specified time.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Unadjusted Trial Balance

A financial report that lists all accounts and their balances before adjustments, used to ensure debits equal credits.