A Distinguish Between an Assignment, a Delegation, and a Third-Party

question 28

Essay

a. Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise.
b. Identify and define the following terms: assignor and assignee; delegator and delegatee; intended beneficiary, incidental beneficiary, creditor beneficiary.

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Definitions:

Bad Debts Expense

An estimated expense that represents the cost of accounts receivable that a company does not expect to collect.

Allowance for Doubtful Accounts

An estimation of the accounts receivable that a company does not expect to collect.

Percentage of Receivables

An accounting method used to estimate the value of a company's bad debts based on a percentage of the accounts receivable.

Normal Balance

The usual balance side (debit or credit) of an account in double-entry bookkeeping, determined by the type of account (asset, liability, equity, revenue, or expense).