What Is the Most Relevant Factor When a Business Entrusts

question 56

Multiple Choice

What is the most relevant factor when a business entrusts bailed goods to an employee who then pilfers those goods?

• A) The employer is subject to vicarious liability.
• B) The employer is expected to take greater care than an ordinary person.
• C) The employer's standard of care is higher for more valuable property.
• D) The employer is subject to personal liability.

Recognize the criteria for recording assets as fixed assets and differentiate between various asset categorizations in the accounting records.

Understand the concept of residual value and its significance in the context of fixed assets.

Comprehend the comprehensive components included in the acquisition cost of equipment.

Understand the methods of depreciation and how they reflect the expense allocation over the asset's useful life.

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Definitions:

Frequency

The rate at which a repeated event occurs over a specified period of time, often used in the context of waves or signals.

Negative Reinforcement

A technique used to increase the likelihood of a desired behavior by removing an unpleasant stimulus when the behavior occurs.

Positive Reinforcement

The process of encouraging a desired behavior by rewarding it, thereby increasing the likelihood of its recurrence.

Desired Employee Behavior

The specific actions and attitudes that an employer wants to encourage in its workforce to achieve organizational goals.