Which of the Following Is an Example of an Activity

question 98

Multiple Choice

Which of the following is an example of an activity that can give rise to a strict liability tort?

• A) driving a car on a mountain road
• B) opening a new restaurant
• C) hiring an employee who is serving a contract with a competitor
• D) using explosives to enlarge streets in a residential area

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Definitions:

Permanent Accounts

Accounts in the general ledger that are not closed at the end of the accounting period, including asset, liability, and equity accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue

The aggregate revenue from selling goods or services, which constitute a firm's central business functions.

Expense Accounts

Accounts used to record the consumption of assets or services that result in a decrease in owner's equity, excluding the withdrawal of business assets by the owner.