When Liability Is Imposed on an Employer for a Tort

question 152

Multiple Choice

When liability is imposed on an employer for a tort committed by an employee, the liability is based on the rule of law known as:

• A) contractor liability
• B) tortious liabilitius
• C) respondeat superior
• D) principal duty
• E) there is no such rule as the employee only is responsible

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Definitions:

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect due to customer default.

Allowance For Doubtful Accounts

The contra asset account for accounts receivable.

Adjusting Journal Entry

A record in accounting that is used to adjust incomes and expenses to match the accounting period in which they actually occurred.