The Running of the Statute of Limitations on a Contract

question 46

Multiple Choice

The running of the statute of limitations on a contract between Martha, the debtor, and Zelda, the creditor​

• A)extinguishes Martha's duty (the contract is void).
• B)acts as an accord.
• C)bars Zelda's remedy (the contract is unenforceable).
• D)is unilateral performance.

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Definitions:

Cash Receipts Journal

A financial journal used to record all cash inflows, tracking receipts from sales, loans, investments, and other sources.

Revenue Journal

A specialized accounting journal used to record the company's revenue transactions, distinguishing them from other types of financial transactions.

Accounts Payable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with creditors (suppliers).

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.