A Reduction in the Bank Account of a Merchant by a Credit

question 66

Multiple Choice

A reduction in the bank account of a merchant by a credit card company refers to:

• A)reconciling.
• B)liquidity.
• C)overdrafting.
• D)charge back.

---

Definitions:

Preexisting Duty Rule

A legal principle stating that an existing obligation in a contract cannot serve as consideration for a new contract or for modifying the existing contract.

Unforeseen Circumstances

Events or situations that could not have been predicted or expected and may affect the ability to fulfill obligations.

Liquidated Debt

A debt with a known, fixed amount that is not disputed by either party.

Unliquidated Debt

A debt for which the exact monetary value has not been determined.