Which of the Following Describes the Relationship Between Equitable and Common

question 7

Multiple Choice

Which of the following describes the relationship between equitable and common law rules?

• A) Common law rules are superior, as equity only acts in personam.
• B) When there is a conflict between common law and equitable principles, common law prevails.
• C) When there is a conflict between common law and equitable principles, equity prevails.
• D) Equity and common law are now both part of the same system, so that no real differences exist.

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Definitions:

Receivables Growth

An increase in the amount of money owed to a company by its customers for goods or services delivered on credit.

Aggressive Revenue

Recognition of revenue in a way that may artificially inflate sales figures, often bending the rules of standard accounting practices.

Fair Value Option

The choice given to entities to report certain financial assets and liabilities at their fair value to measure change in their value.

Financial Instrument

An agreement resulting in a financial asset for one party and a financial obligation or equity security for another.