If a Customer Makes Payment on a Receivable That Has

question 139

True/False

If a customer makes payment on a receivable that has already been written off,the receivable account is reestablished.

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Definitions:

Bond Trustee

A third party in a bond agreement who ensures that the issuer meets all terms and conditions for the benefit of bondholders.

Redemption Payments

Payments made to buy back or retire a financial instrument, such as bonds, from investors before its maturity date.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date, typically at a predefined call price.

Deferred Call Period

A time frame during which a company cannot redeem a callable security, usually a bond, prior to a specified date.