Which of the Following Is a Difference Between a Novation

question 9

Multiple Choice

Which of the following is a difference between a novation and assignment?

• A)Novation has new terms, whereas assignment does not.
• B)Novation must be agreed to, whereas assignment must not.
• C)All of the above are differences between a novation and assignment.
• D)None of the above are differences between a novation and assignment.

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Definitions:

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada, focusing on simplicity and cost-effectiveness.

Accounts Receivable

Accounts receivable represents money owed to a company by customers for products or services delivered but not yet paid for.

Operating Activities

Activities that relate to a company’s primary business operations, including revenue and expense transactions affecting net income.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal loan amount.