If the Surety Is A(n) ___________, Then the Creditor May

question 33

Multiple Choice

If the surety is a(n) ___________, then the creditor may hold the surety liable as soon as the principal debtor defaults.

• A) absolute surety
• B) conditional surety
• C) subrogee
• D) mortgagee

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Definitions:

Retained Earnings

The portion of a company’s profits that is retained within the business rather than distributed to shareholders as dividends.

Revenue Accounts

Accounts that record the income a company earns from its normal business activities.

Expense Accounts

Accounts that track the costs of operating a business, such as rent, utilities, and salaries.

Identification Codes

Unique codes used to identify and track items or information in various systems.