Assignees Should Promptly Notify the Promisor of an Assignment Because

question 25

Multiple Choice

Assignees should promptly notify the promisor of an assignment because the promisor who renders performance to the assignor without notice of the assignment:

• A) is still liable under the contract.
• B) has no further liability under the contract.
• C) creates a novation.
• D) can be sued by the assignee for nonperformance.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, usually the currency in which it generates and spends cash.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in its net income or loss for that period.

Exchange Rates

The rate at which one currency can be exchanged for another, a key factor affecting international business and finance.

Depreciation Expense

Depreciation Expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting the usage and wear and tear of the asset.