If No Harm Results from a Negligent Action, There Can

question 45

True/False

If no harm results from a negligent action, there can be no suit for damages.

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Definitions:

Net Income

The net income a business earns following the deduction of all costs, taxes, and expenses from its total revenue.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used as the basis for preparing financial statements.

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, categorized for reporting and analysis purposes.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.