An Agreement Made with an Intention to Defraud Creditors or Other

question 16

Multiple Choice

An agreement made with an intention to defraud creditors or other persons is referred to as a(n) :

• A) usurious agreement.
• B) wagering agreement.
• C) dealership agreement.
• D) agreement against public policy.

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Definitions:

Cash Debited

An accounting entry that increases the cash balance in a company's ledger.

Notes Receivable

Financial assets representing amounts owed to the holder by others through formal written agreements stipulating payment terms.

Open Account

A credit arrangement where goods and services are provided with the agreement that payment will be made at a later date.

Direct Write-Off Method

A method of accounting for bad debts that involves expensing accounts at the time they are determined to be uncollectible.