A Guarantor Can Be Required to Pay an Obligation Only

question 61

True/False

A guarantor can be required to pay an obligation only after the principal debtor defaults.

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Definitions:

Net Income

Net income refers to the total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Accounts

Financial records that track the transactions and balances of specific assets, liabilities, revenues, or expenses.

Balances

The amounts of money recorded in financial accounts, reflecting the difference between credits and debits.