In Which Case Might a Default Judgment Be Entered

question 10

Multiple Choice

In which case might a default judgment be entered?

• A) The defendant did not respond to the complaint and would otherwise have been shown to have liability.
• B) The defendant did not respond to the complaint.
• C) The plaintiff did not respond to the complaint.
• D) The plaintiff did not respond to the complaint and would otherwise have been shown to have liability.

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Definitions:

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Recording Expenses

The process of documenting and categorizing expenditures in the financial records of an organization.

Current-Period Income

The net income earned by a business during the most recent accounting period.

Accrual Accounting

An accounting method where transactions are recorded when they are earned or incurred, not necessarily when cash changes hands, providing a more accurate financial picture.