Edward Owes Frank $100, Payable in Six Months

question 44

Multiple Choice

Edward owes Frank $100, payable in six months. Frank, who is leaving the country, gives his rights to the payment to Marge for $80. Which of the following is true about the scenario?

• A) Frank is the obligor.
• B) Edward owes Marge $80.
• C) Edward owes Marge $100.
• D) Frank will get $100 from Edward.

Understand the law of supply and how price influences quantity supplied.

Analyze the impact of technological advancements on supply.

Understand how changes in consumer preferences and population demographics affect demand.

Comprehend how market mechanisms (increase or decrease in the number of firms) affect supply.

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Definitions:

Net Income

The net income of a company, calculated by subtracting all costs and taxes from its total revenue.

Writing Off

The accounting action of declaring an asset to be of no value and clearing it off the books, often due to irrecoverability or obsolescence.

Bad Debts

Amounts owed to a company that are not expected to be paid, often resulting from credit sales to customers who are unable to fulfill their financial obligations.

Inventory Reserve

A provision for unsellable inventory, reflecting a decrease in the value of inventory assets.