Chiko Has Possession of a Ring

question 60

Multiple Choice

Chiko has possession of a ring.He is entitled to keep it if

• A)he bought it from a thief in the honest belief that the thief was the true owner.
• B)he found the ring while trespassing on private property.
• C)he stole it.
• D)he found it on public property and the true owner cannot be located.
• E)he received it as a gift, but only if the person who gave it to him had previously acquired it by purchase.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid, representing liabilities on the balance sheet.

Assets

Assets are resources controlled by a company as a result of past events and from which future economic benefits are expected to flow to the entity.

GAAP

Set of accounting standards and principles designed to ensure consistency, fairness, and transparency in financial reporting.

IFRS

International Financial Reporting Standards, a set of accounting principles for reporting financial information used globally.