Account stated 2025

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Credit Cards as Liabilities The balance owed on a credit card can be treated either as a negative asset, known as a contra asset, or as a liability.
There are three elements of an account stated claim: (1) the account was presented, (2) by mutual agreement, it was accepted as correct, and (3) the debtor promised to pay the amount so stated. The second and third elements may be shown by the debtors failure to object to the stated amount within a reasonable time.
Although California courts have not yet weighed in on the issue, federal courts applying California law have concluded that monthly credit card statements may form the basis for an account stated, notwithstanding the existence of a written cardholder agreement. (Lauron, supra, 8 Cal. App. 5th at pp.
An account stated is a document summarizing the amount of money a debtor owes a creditor . Account stated is also a cause of action in many states that allows a creditor to sue for payment.
Often the account stated is a bill, invoice or a summary of invoices, signed by the customer or sent to the customer who pays part or all of it without protest.