Assuming No Exception Applies, Which of the Following Is True

question 46

Multiple Choice

Assuming no exception applies, which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is no dispute over the amount or existence of the debt, and the creditor agrees?

• A) A liquidated debt is involved, and there is an accord and satisfaction.
• B) A liquidated debt is involved, and there is an accord but no satisfaction.
• C) A liquidated debt is involved, and there is neither a satisfaction nor an accord.
• D) An unliquidated debt is involved, and there is an accord and satisfaction.
• E) An unliquidated debt is involved, and there is an accord but not satisfaction.

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Definitions:

Matching Principle

An accounting rule that dictates expenses should be recorded in the same period as the revenues they helped to generate.