Which of the Following Statements Most Accurately Defines 'Ratio Decidendi

question 10

Multiple Choice

Which of the following statements most accurately defines 'ratio decidendi'?

• A)The final order of the court is binding on the immediate parties to the action.
• B)Anything said about the law in the course of a judgment that does not form part of the matters in issue.
• C)The legal reasoning upon which the decision in a case was based.
• D)The doctrine of precedent;'to stand by a decision.'

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Definitions:

Adjusting Entries

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

Income Summary

Income summary is an account where revenues and expenses are accumulated to calculate net income or loss for a specific period before transferring to the capital account.

Temporary Account

An account used to accumulate transaction information during a single accounting period, which is then transferred to permanent accounts.

Withdrawals

Amounts of money taken out from a business by the owner(s) for personal use, not considered a business expense.