For Rescission to Be Available as a Remedy for a False

question 38

True/False

For rescission to be available as a remedy for a false statement, a misrepresentation must have been made with scienter.

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Definitions:

Accrued Expense

Expenses that have been incurred but not yet paid for, recognized in the financial statements through adjusting entries.

Employees' Salaries

Regular payments made to employees for their service to an organization, typically agreed upon and fixed in a contract.

Comprehensive Insurance

An insurance coverage that protects against a wide range of perils, excluding certain specified exclusions.

Prepaid Insurance

Prepaid insurance refers to payments made for insurance coverage before the actual coverage period, recognized as an asset on the balance sheet until used.