Which of the Following Is True Regarding an Assignee's Acceptance

question 41

Multiple Choice

Which of the following is true regarding an assignee's acceptance of assigned rights?

• A) A creditor beneficiary must accept assignment of rights, but there is no requirement that a donee beneficiary do so.
• B) A donee beneficiary must accept assignment of rights, but there is no requirement that a creditor beneficiary do so.
• C) An assignee must agree to accept assigned rights, and there is a strict protocol for doing so.
• D) An assignee may decline an assignment if he has not agreed to it and declines in a timely fashion after learning of it.
• E) An assignee may only decline an assignment if a delegation of duties is also involved.

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Definitions:

Inventory Method

An accounting approach used to value and manage the inventory a business holds, affecting cost of goods sold and ending inventory.

Accounts Payable Turnover Ratio

A financial efficiency ratio that measures how many times a company pays off its suppliers during a specific period.

Interest Expense

The cost incurred by an entity for borrowed funds, shown as an expense on the income statement.

Interest Payable

A liability account representing the amount of interest expense that has been incurred but not yet paid by the company.