There Must Be Privity Between the Parties in a Case

question 264

True/False

There must be privity between the parties in a case of fraud.

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Definitions:

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which are expensed over the period the insurance coverage relates to.

Current Asset

Asset expected to be converted into cash, sold, or consumed within a year or within the business's operating cycle.

Liability Subsections

The divisions within the liabilities section of a balance sheet, categorizing liabilities based on their nature or duration, such as current liabilities and long-term liabilities.

Long-Term Liabilities

Liabilities that usually will not be due for more than one year.