Use the Following to Answer Questions

question 77

Essay

Use the following to answer questions
Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.Enter only one letter for each element.

-In preparing the bank reconciliation for Heath Company,an employee discovered that the bank had collected one of the company's notes receivable in the amount of $20,000 and had deposited this amount in the company's account at the bank.This amount does not include interest.

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Definitions:

Contractual Rights

Legal rights acquired by individuals or entities under the terms of a contract, including the rights to receive goods, services, or payments.

Creditor Beneficiary

A third party that benefits from a contract, particularly one made between two other parties to pay a debt owed to the beneficiary.

Second-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from its execution, typically in contracts intended to benefit a third party.

Vesting

The process by which an individual acquires the right to a present or future payment, benefit, or asset, becoming fully guaranteed even if the individual's status changes.