Answer:
East Northland has forgiven the debt it was owed by South Westland. This would be reflected in the ___ account.
c. financial
Explanation:
Financial account deals with all transactions that result in some changes of ownership of financial assets and liabilities between two organizations. With this debt forgiveness by East Northland, there has been a change in the ownership of financial assets and liabilities. South Westland is no longer indebted to East Northland, and East Northland can no longer regard the former debt owed by South Westland as a financial asset. So each organization will record the debt forgiveness in its financial accounts.
