The Majority of States Follow the ____ Rule in Awarding

question 39

Multiple Choice

The majority of states follow the ____ rule in awarding damages for fraud.

• A) benefit-of-the-bargain
• B) out-of-pocket
• C) liquidated
• D) restitution

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Definitions:

Revenue Accounts

Accounts used to track the income generated from a company's operations or activities.

Temporary Accounts

Accounts used to track transactions within a fiscal period, which are reset by transferring the balance to permanent accounts at the end of the period. These include revenues, expenses, and dividends accounts.

Accounting Period

The specific time period during which financial activities are recorded and compiled into financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones, facilitating the start of a new accounting period.