Sarah Owes Jane $10,000 Under a Valid Contract but Has

question 16

Multiple Choice

Sarah owes Jane $10,000 under a valid contract but has been unable to pay the debt. Becky agrees to pay $10,000 to Jane in exchange for Jane's contract claim against Sarah. In this scenario, Becky is the ________.

• A)assignee
• B)obligor-promisor
• C)obligee-assignor
• D)obligee-promisee-assignor

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Definitions:

Cash Payment

A transaction where a payment is made using physical currency or through electronic funds transfer, directly settling an obligation.

Cash Account

An account that records cash transactions, including cash received and disbursed, maintained by a company to keep track of its liquid assets.

Recorded

This term signifies the process of documenting transactions and events in the accounting records of a business.

Major Account Groups

Categories used in accounting to organize and summarize financial transactions, including assets, liabilities, equity, revenue, and expenses.