An Assignee's Rights Are Subject to the Defenses That the Obligor

question 48

True/False

An assignee's rights are subject to the defenses that the obligor has against the assignor.

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Definitions:

Petty Cash

A small amount of cash on hand used for covering minor expenses in an organization.

Periodic Inventory Method

An accounting method where inventory is updated and the cost of goods sold (COGS) is calculated at the end of an accounting period, instead of recording inventory transactions as they happen.

Delivery Expense

Costs incurred in transporting goods from a seller to the purchaser, which may include shipping fees, fuel, and labor.

Normal Balance

The side (debit or credit) on which increases to the account are recorded, depending on the account type.