Which of the Following Statements Describes When a Bailee May

question 43

Multiple Choice

Which of the following statements describes when a bailee may return goods of the same description but not the identical goods?

• A) when the bailor is given a warehouse receipt
• B) when the original goods have been destroyed by fire and it is determined that the bailee was negligent
• C) when the goods have been pledged
• D) when the bailor is in breach of the bailment contract
• E) when the goods are fungible

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Definitions:

Faithful Representation

An accounting principle that financial statements should accurately reflect the underlying reality of a company's financial status.

Economic Condition

The state of the economy at a given time, including factors such as growth rates, unemployment levels, inflation rates, and market trends.

Accounting Procedures

Established methods and practices for recording financial transactions and maintaining financial records.

Supplemental Footnotes

Additional notes in financial statements that provide further details on the numbers presented in the main report.