Which of the Following Statements Is True About Bailments

question 17

Multiple Choice

Which of the following statements is true about bailments?

• A)Bailments are always governed by express contracts.
• B)Title is transferred in a bailment, along with possession of an object for a short period of time.
• C)In some cases, a bailment may exist when the recipient does not return the actual goods.
• D)A bailment cannot be established without actual delivery and acceptance of the goods.

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Definitions:

Control Account

A summary account that consolidates detailed information held in subsidiary ledgers, simplifying the general ledger.

Subsidiary Accounts

Individual accounts contained within a general ledger, used to provide detailed information about a specific aspect of the business.

General Ledger

A comprehensive record of a company's financial transactions over the duration of its life, organized by accounts.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.