A Defense That Can Only Be Asserted by the Principal

question 36

Multiple Choice

A defense that can only be asserted by the principal debtor is called a:

• A) real defense.
• B) subrogated defense.
• C) personal defense.
• D) joint defense.

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Definitions:

Ending Merchandise Inventory

The final stock value of goods being sold by a retail or wholesale company at the close of an accounting period.

Purchase Allowances

Reductions in the price paid by a buyer to a seller, due to minor defects or quality issues with the goods provided.

Price Reduction

A decrease in the selling price of products or services, often to drive sales or clear inventory.

Prompt Payment

A financial discipline that involves settling debts quickly, often rewarded by suppliers with discounts.