Which of the Following Statements Is True of the Fault

question 76

Multiple Choice

Which of the following statements is true of the fault rule when an engagement is broken?

• A) If the person who accepted the engagement ring breaks off the engagement, the ring will be owned by the person who marries first.
• B) If the person who accepted the engagement ring breaks off the engagement, he or she can retain the engagement ring.
• C) If the person who gave the engagement ring breaks off the engagement, the other side can rightfully keep the engagement ring.
• D) If the person who gave the engagement ring breaks off the engagement, the ring is sold at an auction and the proceeds are shared between both parties.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.

Bank Statement

A summary of all transactions mailed to the depositor or made available online by the bank each month.

Petty Cash System

A method used by businesses to manage small, daily expenses, involving a small store of cash on hand.

Cash Payments

Financial activities that result in the spending of cash to fulfill debts or acquire products and services.