Most States Have Adopted a Comparative Negligence System Because It

question 29

True/False

Most states have adopted a comparative negligence system because it distributes the cost of the accident according to the degree of both plaintiff's and defendant's fault.

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Definitions:

Closing Entries

Entries recorded at the close of an accounting period to move balances from temporary accounts to permanent ones.

Owner's Equity Account

An account on a company's balance sheet that represents the total amount invested by the owners plus any retained earnings or losses.

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period and are carried forward to the next period.

Nominal Accounts

Accounts that are used in accounting to record expenses, incomes, losses, and gains; these accounts are closed at the end of the accounting period.