If the Buyer Received Goods on Credit While He Was

question 102

True/False

If the buyer received goods on credit while he was insolvent by misrepresenting in writing his solvency, the seller is able to reclaim the goods only if the seller makes a demand on the buyer within ten days after the buyer has received the goods.

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Definitions:

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting rules.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

Normal Balance

The side (debit or credit) of an account that is usually increased. For example, assets have a normal debit balance, while liabilities have a normal credit balance.

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.