A Bailment Relationship Was Created Between Vijay and Amanda

question 35

Multiple Choice

A bailment relationship was created between Vijay and Amanda.It was intended to last for two weeks.That period has expired.Amanda now claims that she is entitled to exercise a lien.Which of the following statements is TRUE?

• A)Amanda was probably the bailor.
• B)A lien can exist only if it was created by statute.
• C)If Amanda is entitled to enforce a lien,she is also entitled to exercise a right of sale.
• D)A lien does not exist if the goods were legitimately returned to their owner at the end of the bailment.
• E)Amanda must be a common carrier.

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Definitions:

Journal Entries

The recordings of financial transactions in a ledger, marking the first step in the accounting cycle.

Year-End Balance

The financial position of an account at the end of the fiscal year after all debits and credits are taken into account.

Paid-In Capital

Funds received from investors in exchange for stock, representing the capital provided by shareholders through the purchase of shares.

Par Value

The stated or principal value of a bond, stock share, or coupon as specified on its certificate or document.