A(n)________ Contract Is One in Which One Person Agrees to Pay

question 52

Multiple Choice

A(n) ________ contract is one in which one person agrees to pay the debt or obligation that a second person owes to a third person if the second person fails to perform.

• A)implied
• B)third-party beneficiary
• C)collateral
• D)quasi

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Definitions:

Weighted Average

A calculation method that accounts for the varying degrees of importance or weights of different elements in a dataset, often used in financial metrics and inventory costing.

Moving Average

A moving average is a statistical method used to analyze data points by creating a series of averages of different subsets of the full data set.

Net Method

An accounting method of recording purchases at the net of any trade discounts and rebates.

Purchase Discounts Lost

Occurs when a company fails to take advantage of early payment discounts offered by suppliers, leading to higher purchase costs.