A Preexisting Duty May Arise Out of a Previous Contract

question 32

True/False

A preexisting duty may arise out of a previous contract.

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Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.

Tax Effect

The impact of tax laws on business transactions, which influences how these transactions are structured and reported.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, and bank deposits.