The Law That Has Been Derived from Cases and Made

question 2

Multiple Choice

The law that has been derived from cases and made by judges is known as:

• A) Common law
• B) Statute
• C) Contract law
• D) Tort law

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Definitions:

Gain on Realization

Profit recognized from selling an asset for more than its book value.

Loss or Gain

The financial result from business transactions, investments or other financial events, indicating a profit (gain) or a deficit (loss).

Realization Account

An account used in the process of dissolving a partnership or corporation, where the assets are converted into cash and liabilities are paid off.

Post-closing Account Balances

The balances of all ledger accounts after adjusting entries have been made and temporary accounts have been closed out at the end of an accounting period.