Barbara Owes Arthur $2,000

question 51

Multiple Choice

Barbara owes Arthur $2,000. On July 1, Arthur assigns the debt to Caleb. Thereafter on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. David immediately notifies Barbara of the assignment. In this case:

• A) under the majority rule, David has priority.
• B) under the English Rule, a second assignment of the same claim can never be effective.
• C) under the English Rule, David has priority.
• D) under all of the rules, Caleb has priority since he was the first assignee in time.

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Definitions:

Fees Earned

Income received or earned for services provided.

Revenue

The entirety of income that a company earns from the transactions tied to its fundamental operational services or product sales.

Accounts Payable

Short-term liabilities representing amounts due to suppliers or creditors for goods and services received but not yet paid for.

Correcting Entry

An entry made in the accounting records to amend a previously made error or oversight.