A State Statute Mandates That the Statute of Limitations for a Negligence

question 79

Multiple Choice

A state statute mandates that the statute of limitations for a negligence lawsuit is two years and the plaintiff is barred from filing the suit if he or she files after that time.This statute is an example of a

• A) private law.
• B) procedural law.
• C) criminal law.
• D) substantive law.

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Definitions:

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Equity Method

An accounting technique used to record investments in other companies, recognizing income based on the investee's profit or loss.

Depreciation Purposes

The allocation of the cost of a tangible asset over its useful life for accounting and tax purposes, reflecting its consumption, wear and tear, or obsolescence.

Intra-Entity Asset Transfers

Movements of assets from one part of a business to another within the same corporation, often for accounting or strategic purposes.