The Fair Debt Collection Practices Act Applies To

question 443

Multiple Choice

The Fair Debt Collection Practices Act applies to:

• A) all creditors attempting to collect debts
• B) all corporations attempting to collect debts
• C) merchants attempting to collect debts from their customers, but not to financial institutions
• D) debt collection agencies
• E) all of the other choices

---

Definitions:

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting the decrease in value due to wear, tear, or obsolescence.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is accounted for initially at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Joint Venture Investment

A joint venture investment is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable tangible and intangible assets.