A Condition ______ Is a Future Event That Terminates the Obligations

question 32

Multiple Choice

A condition ______ is a future event that terminates the obligations of the parties when it occurs.

• A) Precedent
• B) Subsequent
• C) Concurrent
• D) At large
• E) Certain

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Definitions:

Collected

The process of receiving payment for goods or services provided, often referring to the actual receipt of cash.

Minimum Cash Balance

The lowest amount of cash a business determines it needs on hand to meet its operational requirements.

Preliminary Cash Balance

An initial estimate of a company's cash balance at the beginning of a financial period, before any adjustments are made.

Cash Receipts

The total amount of cash collected by a business during a given period, including all sources of income.