Article III of the Constitution States That the Judicial Power

question 40

Multiple Choice

Article III of the Constitution states that the judicial power of the United States shall be vested in one Supreme Court and:

• A) such lower courts as the Supreme Court establishes.
• B) such lower courts as Congress may establish.
• C) a system of special courts, district courts, and courts of appeals.
• D) a system of lower federal courts and such state courts as each state legislature provides.

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Definitions:

Uncollectible Accounts

Uncollectible Accounts are receivables that a company does not expect to collect and are thus written off as an expense for bad debts.

Extraordinary Loss

Unusual and infrequent losses that are not part of the ordinary activities of a business, such as losses from natural disasters.

Goodwill Impairment

A charge that occurs when the fair value of goodwill falls below its carrying value on the balance sheet, indicating that the asset is not generating the expected profits.

Condensed Income Statement

A simplified financial statement showing the gross revenue, expenses, and net income of a company, omitting detailed accounts.