Which of the Following Statements Is True of Fraud in the Execution

question 2

Multiple Choice

Which of the following statements is true of fraud in the execution?

• A)It occurs when a party intends to make a contract based on a false statement of terms.
• B)It  occurs when a party does not intend to sign a contract, as the nature of the writing is not understood.
• C)It refers to a party forced to sign a contract under duress.
• D)It occurs when a party signs a contract based on an innocent misrepresentation.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, typically recorded as an expense for the period it relates to.

Year-End

The conclusion of an accounting period, typically the end of the fiscal or calendar year, when companies finalize their financial statements.

60-Day Note

A financial instrument or a loan agreement that requires repayment of the principal amount along with any accrued interest within 60 days.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money at a set date in the future, often bearing interest.