If the Principal Does Not Pay the Creditor, and the Surety

question 154

Multiple Choice

If the principal does not pay the creditor, and the surety has to satisfy the debt, the principal:

• A) is only obligated to repay the surety 25% of the debt
• B) is not obligated to repay the surety
• C) is only obligated to repay the surety in some states
• D) is only obligated to repay the surety 50% of the debt
• E) none of the other choices are correct

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Definitions:

Error Corrections

Adjustments made in financial statements to amend previously incorrect accounting entries and reports.

Originally Reported

Originally reported refers to the initial financial figures or data that were officially announced or published by a company or organization.

Prepaid Revenue

Income received by a company for goods or services to be delivered or performed in the future, recorded as a liability on the balance sheet until earned.