A Negligent Misrepresentation Results When the Party Making the Statement

question 64

True/False

A negligent misrepresentation results when the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it.

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Definitions:

Adjusting Entries

Journal records created during the final part of an accounting period for the purpose of attributing revenues and expenses to the timeframe in which they actually took place.

Correct Balances

Accurate financial figures in accounting records that match the real-world values of assets, liabilities, and equity.

Accounting Period

A specific time frame for which financial records are tracked and reported, typically a year or quarter.

Accrual Basis

An accounting method where revenue is recorded when earned and expenses are recorded when incurred, regardless of when cash transactions occur.