Once an Accounts Receivable Is Written Off ________

question 177

Multiple Choice

Once an accounts receivable is written off ________.

• A) the account must be turned over to a collection agency
• B) the company continues to pursue the collection
• C) the company still expects to be paid
• D) the customer's accounts receivable is removed from the books

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Definitions:

Formal Contract

A contract that must have a special form or must be created in a specific manner.

Simple Contract

A contract that is not a formal contract. Also called an informal contract.

Third-Party Beneficiary

A third-party beneficiary is a person who, although not a party to the contract, stands to benefit from the contract's execution or has rights that can be enforced under the contract.

Quasi-Contract

An obligation imposed by law in order to prevent unjust enrichment, treated as a contract for the purpose of remedy despite the lack of a formal agreement.