When an Accord and Satisfaction Is at Issue,what Is the New

question 23

Multiple Choice

When an accord and satisfaction is at issue,what is the new agreement to pay less than the creditor claims is owed called?

• A)Acknowledgement
• B)Seal
• C)Accord
• D)Satisfaction
• E)Compromise

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated cost of manufacturing overhead and an allocation base, used to assign overhead costs to products.

Direct Labour-hours

The total time spent by workers who are directly involved in the manufacturing or assembly of a company’s products.

Cost of Goods Sold

The total cost directly attributed to the production of goods that were sold, including materials, labor, and overhead.