Which of the Following Is Characteristic of a Bailment

question 65

Multiple Choice

Which of the following is characteristic of a bailment?

• A)There is a separation of ownership and possession
• B)A bailment must be a contract
• C)It must last for an indefinite time
• D)All of these

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Definitions:

FASB

Stands for the Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

Qualitative Characteristics

Features that make financial information useful to users, including relevance and faithful representation, among others, guiding the preparation and presentation of financial statements.

GAAP

A group of customary accounting regulations and benchmarks used in financial reporting.

Inventory Cost Flow

An accounting method that determines the cost assigned to goods sold and ending inventory based on the order in which the costs were incurred.