If a Bailee Misdelivers the Bailed Property at the Termination

question 1

Multiple Choice

If a bailee misdelivers the bailed property at the termination of the bailment,_____.

• A) the bailee is liable to the bailor
• B) the bailor assumed the risk and is liable
• C) the property should not be returned to the bailor
• D) the bailee does not have the burden of showing that the accident occurred despite exercising due care

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Definitions:

Prepaid Expenses

Prepaid expenses are costs for goods or services that are paid in advance of the receipt or use, recognized as assets on a balance sheet.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear, or expiry of the asset's practical lifespan.

Billed

Billed refers to the issuing of invoices to customers for products sold or services rendered, indicating the amount due for payment.

Balance Sheet

An accounting document showcasing a firm's assets, debts, and equity of shareholders at a precise time.