Bank Safe Deposit Boxes Are Not Bailments Because Both the Bank

question 41

True/False

Bank safe deposit boxes are not bailments because both the bank and the bank customer must use their own keys to open the box.

---

Definitions:

Cost Method

An accounting approach for valuing certain assets and investments at their original purchase cost, with adjustments for depreciation or impairment.

Stock Investments

Financial assets representing ownership in a corporation, giving the holder a share of the corporation's earnings and assets.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by recognizing income in proportion to their ownership percentage.

Cash Dividends

The allocation of a part of a corporation's profits, determined by its board of directors, to a group of its stockholders as cash.