A Donee Beneficiary Is a Third Party That Benefits from a Contract

question 50

True/False

A donee beneficiary is a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt in return for compensation plus interest.

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.

Accrued Revenues

Revenues earned in an accounting period that have not yet been received in cash or recorded at the statement date.

Unearned Rent

Income received for rent before the rental period has occurred, classified as a liability until the services (rental period) are performed.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the employer, recognized as a liability on the balance sheet.