A Contractual Clause That Requires One Party to Assume the Financial

question 101

Multiple Choice

A contractual clause that requires one party to assume the financial consequences of another party's legal liabilities is called:

• A)a worker's compensation clause.
• B)an extra clause.
• C)an indemnification clause.
• D)a tort.

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Definitions:

Receivable

An amount that is owed to a company by its customers or clients, usually as a result of the sale of goods or services on credit.

Bad Debt Provision

An allowance for accounts receivable that may not be collected, representing an expense to account for credit sales that might not be paid.

Manage Earnings

The practice of using accounting techniques to produce financial reports that may paint a more favorable picture of a company's financial position or performance than is actually the case.

Trade Receivables

Amounts owed to a business by its customers for goods or services delivered on credit.