Which of the Following Is Not a Reason for the Passage

question 33

Multiple Choice

Which of the following is not a reason for the passage of compensation statutes?

• A) to give wrongfully convicted persons lots of money
• B) to provide funds for psychological counseling services
• C) to give wrongfully convicted persons money for legal fees
• D) to compensate wrongfully convicted persons for the time they have spent in prison

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Definitions:

Percentage-Of-Completion

An accounting method that recognizes revenues and expenses in proportion to the completion of a contracted work or project.

Economic Substance

The underlying economic reality of a transaction which determines its legal and tax implications, regardless of its form.

Inventory Value

The total cost assigned to goods and materials held in stock by a business at a specific point in time.

Percentage-Of-Completion

An accounting method used to recognize revenue and expenses of long-term projects proportionally with the degree of completion.