If a Municipality Contracts with a Contractor to Pave a Street

question 45

True/False

If a municipality contracts with a contractor to pave a street, the homeowners on that street are third-party beneficiaries of the contract.

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Definitions:

Year-End

The end of a fiscal year or calendar year, a significant reporting and assessment time for businesses and individuals for accounting and tax purposes.

Dishonored Note

A promissory note that has not been paid by the maker at maturity, resulting in a default.

Collection Efforts

Activities undertaken by a business or organization to pursue and receive payments owed by customers or clients.

Reversing Entries

Journal entries usually made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period.