In All Substituted Contracts There Must Be an Agreement Among

question 25

True/False

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor.

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Definitions:

Valuation Techniques

Methods and approaches used to determine the fair value of an asset, liability, or a company, based on assumptions of future cash flows, market trends, or comparative assets.

Fair Value Approach

An accounting method that measures assets and liabilities at estimates of their current market value rather than historical cost.

Quoted Prices

The prices of securities that are publicly listed and available for investors to buy and sell.

Active Markets

Markets where transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.