When a Plaintiff Files a Suit Against a Defendant, Plaintiff

question 87

Multiple Choice

When a plaintiff files a suit against a defendant, plaintiff:

• A) must publish a notice of the suit in the legal advertisement section of the local newspaper
• B) must give notice to the defendant by service of process
• C) must give notice to the defendant by posting notice of the suit with the clerk of the court
• D) has no duty to notify defendant since we have a duty to know what legal actions may be pending against us
• E) none of the other choices are correct

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Definitions:

Current Liabilities

Short-term financial obligations due within one year or within the entity's operating cycle, whichever is longer, necessary for the ongoing operations of the business.

Interest Expense

The charge an entity incurs for using borrowed capital over a set period.

Interest Payable

The amount of interest expense that has accumulated but has not been paid by the end of the accounting period.

360-Day Year

An accounting assumption that a year consists of 360 days, which simplifies interest calculation by assuming each month has 30 days.