Assuming No Exception Applies,which of the Following Is True Regarding

question 69

Multiple Choice

Assuming no exception applies,which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is a dispute over the amount of the debt,and the creditor agrees?

• A)A liquidated debt is involved,and there is an accord and satisfaction.
• B)An unliquidated debt is involved,and there is an accord but not satisfaction.
• C)A liquidated debt is involved,and there is an accord but no satisfaction.
• D)A liquidated debt is involved,and there is neither a satisfaction nor an accord.
• E)An unliquidated debt is involved,and there is an accord and satisfaction.

---

Definitions:

Operating Activities

Transactions involved in the main business functions of an entity, including revenue and expense activities.

Indirect Method

A cash flow statement reconciliation technique that adjusts net income for non-cash transactions, deferred amounts, and accruals to calculate operating cash flow.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Statement of Cash Flows

An analysis document indicating the effects of changes in balance sheet items and earnings on cash and cash equivalents, categorized by operating, investing, and financing operations.