GAAP Considers Debt Extinguished If One of the Following Occurs

question 36

True/False

GAAP considers debt extinguished if one of the following occurs:
* the creditor has been paid in full and has released the company from any further obligations.
* the debtor is legally released from being the primary responsible party to the debt.

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Definitions:

Majority Leader

A top representative of the majority party in a legislative body, responsible for coordinating the party's legislative strategy and liaising between the party and other members.

Speaker of the House

The presiding officer of the United States House of Representatives, elected by the members of the House, responsible for leading the House's legislative business and representing it to the president and the Senate.

President Pro Tempore

A senior member of the majority party in the Senate who presides over the Senate in the absence of the Vice President.

Seniority

A system where priority or preference is given to individuals based on the length of service or tenure in a certain context, such as employment or political office.