Only When the Misrepresentation Is Truly Innocent and Without Fault

question 83

True/False

Only when the misrepresentation is truly innocent and without fault is the victim restricted to the remedy of rescission.

---

Definitions:

Investing Cash Flow

Investing cash flow refers to the cash inflows and outflows associated with the purchase and sale of long-term investments and capital assets.

Current Ratio

A liquidity ratio that measures a company's capacity to pay off its short-term liabilities with its short-term assets.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, as recorded on the balance sheet.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, essentially representing the owners’ equity.